01 / THE FOUNDATION
FIRST, UNDERSTAND THE MARKETS.
Gold trading means speculating on how the price of Gold moves against the US dollar. You’ll see this pair written as XAU/USD.
Buy or sell
Buy when you expect Gold to rise. Sell when you expect it to fall. Either direction can create opportunities — and losses.
Know your trade
An entry is where a trade begins. A stop loss is an instruction intended to limit losses; execution can slip. A take profit is an instruction to close at a target.
Understand the movement
Pips measure price changes, but Gold pip conventions differ by broker. Check your contract specifications. Gold can move quickly around economic news, interest rates and global events.
XAU/USD / GOLD · US DOLLAR
ILLUSTRATIVE DIAGRAM · NOT LIVE DATA OR A TRADE RECOMMENDATION
EXPLORE OUR TRADING APPROACH
MANAGE THE EXPOSURE
KNOW WHAT YOU’RE TRADING.
Understanding the order is only part of the process. Position size and leverage determine how much a movement can affect your account.
XAU/USD, decoded
XAU is the market symbol for Gold; USD is the US dollar. The quote commonly describes the dollar price of one troy ounce. Your broker’s product and contract specifications determine exactly what you trade.
Lot size and exposure
A lot is a standard contract size, but Gold contract sizes differ between brokers. Larger positions increase both potential gains and losses. Check the value of each price movement before placing an order.
Leverage and margin
Leverage lets you control a larger position with a smaller deposit, called margin. It magnifies losses as well as gains. Falling below margin requirements can trigger forced closure; protections vary by account and jurisdiction.
Spread, slippage and risk
The spread is the difference between buy and sell quotes. Slippage means the execution price differs from the requested price. Decide what you can afford to lose, use appropriate sizing and never rely on a stop loss as a guaranteed price.