Darling Mirror
Academy

How to trade gold (XAU/USD)

A plain, practical guide for traders in Australia — lots, leverage, margin, costs and the risk rules that keep beginners in the game.

xau/usd · one bar, one hourTARGETENTRYSTOP
A plan is three prices decided before the entry, not after.

Gold (XAU/USD) is traded as a CFD — you speculate on the price, you don't own the metal or coin. One standard lot is 100 oz.

Lots, leverage and margin

Margin is what your broker locks to open a position: (lots × 100 × price) ÷ leverage. At 1:200 a 0.10 lot needs $213.75. Use the margin calculator.

Size to a fixed risk

Decide the money you'll lose at your stop first, then let the position-size calculator pick the lot. Never size by how much margin you have.

A first gold trade, in the order the steps actually happen.A first gold trade, in the order the steps actually happen.01Decide the loss youacceptIn money, before thechart. Everything elsefollows.02Find where the ideais wrongThat price is the stop— not a round number.03Let the size becalculatedRisk divided by stopdistance, in lots.04Check what it locksMargin at Up to 1:200,which is a maximum andvaries.05Count the costSpread on entry, swapfor every night held.
A first gold trade, in the order the steps actually happen.

Costs

You pay the spread on entry and an overnight swap if you hold. Factor both into every trade.

Ready to trade gold

Trade XAU/USD with tight spreads on FxPro

FxPro offers gold with competitive spreads, MT4/MT5 and -friendly funding for traders in Australia.

Trade gold on FxPro →
FAQ

Common questions

What are the practical steps to place my first gold trade?

Decide your risk in dollars, work out the stop distance on the XAU/USD chart, then use the position size calculator to get the lot size. Enter the order with the stop attached, check the margin with the margin calculator, and leave the trade alone unless your plan says otherwise.

How do I set a stop loss on gold when one pip is only 0.01?

Set the stop by structure or volatility, then convert it to dollars rather than choosing a round pip number. Gold moves in dollars per ounce, so a stop 5.00 away is 500 pips and, on one standard lot, $500. Use the pip value calculator to see the dollar cost before you commit.

How do I work out the margin for a 0.10-lot gold position?

Margin depends on the notional value and the leverage cap. At 1:200, a 0.10-lot gold position needs about $85.50 margin. That figure is the broker's requirement to hold the trade, not the amount you can lose; the loss is set by your stop. Our margin calculator does the arithmetic for other sizes.

Should I use a market order or a limit order for gold?

Use a limit order when you want a specific price and can wait, and a market order when you need in now and accept the price you get. What suits you depends on your plan and the session you trade. Either way, attach the stop in the same order rather than adding it afterwards.

What should I check before pressing buy or sell on XAU/USD?

Check the risk in dollars, the lot size, the stop and the margin requirement, in that order. Also confirm which session you are in, since liquidity and volatility differ across the day. If any of those four numbers is unclear, the trade is not ready; run the position size and margin calculators first.