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How to trade gold (XAU/USD)

A plain, practical guide for traders in South Africa — 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 1:200for retail; up to 1:500foreligible/professionalclients depending oninstrument., which is amaximum and varies.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

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FAQ

Common questions

What are the practical steps for a first gold trade?

Write your entry, stop and target before you click. Calculate lot size from the rand amount you are willing to lose using the position size calculator, check the margin with the margin calculator, then place the order with a stop attached. Review the result afterwards regardless of outcome, and keep size small while you learn.

How do I work out my lot size for a gold trade?

Lot size follows from risk, not from confidence. Decide the rand amount you will risk, convert it to dollars at the current USD/ZAR rate, then divide by the dollar value of your stop distance. On gold, a 0.10-lot position moves $10 per dollar of price, so a $5 stop is $50 before rand conversion.

How does leverage affect the margin I need for gold?

Leverage sets the margin requirement, and it is a cap rather than a setting to aim at. At 1:200, a 0.10-lot gold position needs about $85.50 margin at the reference price near 4275.0. Higher leverage reduces margin but increases the speed at which losses reach your balance, so size positions by risk instead.

Where should I place my stop loss on a gold trade?

Place the stop where your trade idea is proven wrong, then size the position to that distance rather than moving the stop to fit your lot size. Gold can move several dollars quickly, so a stop that is too close gets hit by noise. The pivot points calculator can help frame nearby levels before you decide.

How do I calculate profit on a gold trade in rand?

Profit in dollars is the price move divided by 0.01, multiplied by pip value for your lot size. A 0.10-lot position gains $10 for each dollar the price rises. Convert that to rand at the USD/ZAR rate when you close. The profit calculator does this arithmetic so you can compare scenarios before entering.