Calculate your optimal position size based on risk
Most traders never truly understand what their lot size controls. This guide breaks it down clearly so you know exactly how price movement affects your account.
Think of gold like owning shares (ounces).
If gold moves from $2,000 to $2,001, your balance changes $1.
Assuming 1.0 lot = 1 BTC (confirm with your broker).
For most USD-based pairs, pip value follows this structure:
GBPUSD, AUDUSD, and NZDUSD follow the same pip structure.
JPY pairs calculate pip value slightly differently. Pip value changes based on price.
At price ~150.00:
| Asset | 0.01 Lot | 0.10 Lot | 1.00 Lot |
|---|---|---|---|
| Gold | $1 per $1 move | $10 per $1 move | $100 per $1 move |
| BTC | $0.01 per $1 move | $0.10 per $1 move | $1 per $1 move |
| EURUSD | $0.10 per pip | $1 per pip | $10 per pip |
Your lot size determines your risk. Understand it before you trade.