Guide · 2 min read
XAUUSD stop loss and pip calculator: the arithmetic by hand
Short answer: Work in dollars per ounce, not pips, because brokers define a pip differently. Stop distance in dollars times ounces gives the money at risk. Money you can lose divided by stop distance times ounces per lot gives the lot size. Round down.
Published: 24 October 2026.
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The formulas
- Stop distance= entry price minus stop price, in dollars per ounce.
- Money at risk= stop distance × ounces. One lot is usually 100 ounces.
- Lot size= money you accept losing ÷ (stop distance × ounces per lot).
Worked example
You will accept losing one hundred dollars. You buy gold at 2,000.00 and the stop is at 1,990.00, so the stop distance is ten dollars. For one lot that is 10 × 100 = 1,000 dollars at risk, which is ten times too much. The lot is 100 ÷ (10 × 100) = 0.10 lot. If your broker allows steps of 0.01, 0.10 lot is fine. Add a little room for the spread.
What is a pip on gold?
Some brokers treat one pip as ten cents, others as one cent. Read the contract specification in your platform, then convert to dollars. See gold pip value.
Where to put the stop
At a level where the idea is wrong, not at a distance that fits your lot. A multiple of ATR is a common starting point. See how to set a stop loss on gold.
Things that change the result
- Spread and slippage. See the gold spread guide.
- News. A stop can fill past its level.
- Small accounts. The minimum lot may risk too much. See lot size for a small account.
More on the first formula in how to calculate lot size for gold and how much to risk per trade.
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FAQ
How do I calculate a stop loss on XAUUSD?
Pick the price level where your idea is wrong, then subtract the entry from it. The gap in dollars per ounce is your stop distance.
What is a pip on XAUUSD?
Brokers define it differently, often as ten cents or as one cent. Read your broker's contract specification before you use pips in a formula.
How do I turn the stop into money?
Multiply the stop distance in dollars per ounce by the number of ounces. One lot is usually one hundred ounces.
How do I find the lot size?
Divide the money you are willing to lose by the stop distance times the ounces per lot. Round down to your broker's lot step.
Why use dollars instead of pips?
Dollars per ounce do not depend on how the broker defines a pip, so the arithmetic is the same on every platform.
Does the spread change the risk?
Yes. The spread is paid on entry, and a stop can fill worse than set during news. Leave room for both.
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