Forex glossary
Gold (XAU/USD)
XAU/USD commonly quotes a troy ounce of gold in US dollars. The instrument may be a spot quotation, CFD or another contract; a gold CFD does not confer gold ownership. Lot size, price units and financing must be checked in its specification, rather than assuming 100 ounces universally.
Illustrative example
How does it work in practice?
A hypothetical CFD defines one lot as 100 gold ounces, so 0.01 lots represents one ounce. A fill-price rise from 2,000 to 2,010 USD per ounce gives a 10 USD price gain before costs.
A case to work through
Same lots, different ounces
Model: A specifies 100 ounces/lot and B 10 ounces/lot; buy 0.1 lots of each, with a +5 USD/ounce move.
- A represents 10 ounces and produces 50 USD price P/L.
- B represents 1 ounce and produces 5 USD.
What follows? Compare ounces of exposure rather than lot numbers alone.
Example boundary: Both specifications are exercise assumptions, not quoted offers.
A useful distinction
Gold (XAU/USD) / Lot (position unit)
A lot is a contract unit; XAU/USD identifies gold pricing rather than a universal notional.
Check your understanding
Compare underlying exposure before comparing lots.
Show the answer and explanation
12 USD
20 × 0.2 × 3 = 12 USD.
Products, delivery and financing calendars
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Related terms
Sources and documentation
- CME: gold contract specifications
Units and a specific contract specification, not a universal XAU/USD lot size.
- MetaTrader 5: Market Watch
Symbol specifications define contract size, volume constraints, margin calculation, execution rules and the commission charging model.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.