I am familiar with trading with currency pairs but I realized that my broker offers Gold and I think that Gold would be good for my trend following strategy. I would like to trade it but don’t know how it goes. I would like someone to point me to resources for trading Gold like the pip value calculation, how to calculate appropriate lot size etc. I noticed that it is one decimal place and that complicates things for me. Anyone that can help me in this regard would be appreciated. Thanks
I am also searching someone to help me with this
Gold is a hedge commoditie. It is used to protect positions (hedge) or when world economy is felling tension. I said global economy, but mainly when US economy are being unpredicteable. This year is election on US and we still will find out economics reflexions of coronavirus. That’s why XAUUSD have been rising so much.
I have been trading Gold and registering my operations on a Telegram channel. But I’m not sure if I can share it here. Before I tell you my channel’s name, I would advice you that I am not prefessional and this is just a register book or orders, okay ? All risk and rewards will be by your own.
Very straight forward
Pips = (Entry value - Exit value)
pips= 1567.43 - 1566.34= 1.09pips
P/L= pips × position size
P/L= 1.09 * 11 = $11.99 (see image)
PS: There is eleven 0.01 in 0.11lots, that’s how the bolded 11 came about.
Or
If price moves 1.09pips in your favour with 0.01 position size you earn $0.109. with 0.11lots you earn 0.109 × 11= $1.199. Gold is very volatile and it is always multiplied by 10. It is the same way you calculate pips and profit in currency but in the case of gold you add one more step by multiplying by 10. $1.199 × 10= $11.99 (see image)
1 Like
I have traded gold successfully for years, but in all that time I have been as confused as hell with the pricing.
Thank you for finally clearing this up for me, cheers.