How much should I risk per trade on XAUUSD? It moves so fast.
My stop loss on gold gets hit very quickly. How do I size a gold trade properly?
For education only. This is not financial advice. Trading carries a high risk of loss.
Log in to reply.
1 Answer
Best answer
Use the same risk percentage as on other markets, but size the trade for gold's larger moves. On most brokers one standard lot is 100 ounces, so a $1 move in price equals about $100 per lot, and 0.01 lot is about $1 per $1 move. Check your broker's contract specification, because it can differ.
Place the stop using something like ATR, then calculate the lot size from the stop distance in dollars. A stop of $10 with a $20 risk budget means 0.02 lots.
Expect big spikes around US data and Fed days, and consider trading smaller or staying out then.
Log in to reply.
