How Do I Calculate Gold Trading Pips? - How to Count Pips for Gold
The gold exchange rate in gold trading is calculated in pips.
What is PIPS - Gold Trading Pips means Price Interest Points - PIP
The smallest movement for gold trading instruments is the gold trading pip.
The value of 1 pip when gold trading is determined by calculating the value of the gold trading lot being traded multiplied by 1 pip.
In Gold Trading 1 lot of gold is equal to 100 Ounces of Gold. Gold is traded in lots (batches) so as to increase the profit per 1 pip in Gold Trading.
What is Pips in Gold Trading? - What is Pip in XAUUSD Trading?
In trading gold, gold will be traded against the US Dollar. The Symbol for Gold is XAU and that of US Dollar is USD - Therefore the Symbol for trading Gold is marked as XAUUSD. However, some brokers will just mark it as GOLD on their trading platform. So to trade gold on your online trading platform you will be looking for the XAUUSD symbol or GOLD quote depending on how your broker marks it.
The XAUUSD quote is marked to 2 decimal places.
Therefore, the second decimal point is the Pip. Note that if there is a 3 decimal point in your XAUUSD quote, it means your broker is quoting fractional pips as the third decimal point. The second decimal is the pip, the third decimal is the pipette.
The smallest movement which is the pip (is the last decimal place).
When Trading XAUUSD in lots of 100 Ounces, it means that the smallest movement, will be equal to 1 cent multiplied by 100 Ounces = $1
Therefore, when trading 1 lot of XAUUSD 1 pip movement is equal to $1.
If the price of gold is 1,500 and it then moves by 1 dollar to 1501, then this will be equal to 100 Pip movement, because the XAUUSD price will be quoted using 2 decimal places i.e. 1500.00 to 1501.00 - the difference is 100 decimal points (100 pips).
XAUUSD Lots - How To Compute Pips in Gold Trading
Lots and Pips in Gold Trading: When counting the value of 1 Pip in XAUUSD Trading you will need to take into account the lot size of XAUUSD being traded.
3 Types of Gold Trading Lots
- Standard Lot - 100 Ounces
- Mini Lot - 10 Ounces
- Micro Lot - 1 Ounces
What is 1 Pip in XAUUSD Trading?
If you trading Standard lot 1 pip on Gold is equal to $1
If you trading Mini lot 1 pip in Gold is equal to 10 Cents
If you trading Micro lot 1 pip on XAUUSD is equal to 1 Cent
How to Calculate Pips on Gold Trading Explained - Gold Pips (XAUUSD Pips) Calculation Examples.
