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XAUUSD expresses a gold price against the US dollar. XAU identifies gold and USD identifies the dollar. On many retail platforms the symbol refers to a gold CFD, but the label alone does not establish the legal product, settlement method or amount represented by one lot.
Read the unit first
International gold prices are commonly quoted in dollars per troy ounce. One troy ounce is approximately 31.1035 grams, not the ordinary ounce used for many household weights. A hypothetical quote of 2,400 therefore means $2,400 per troy ounce, not per gram or per lot.
To estimate a pure-metal dollar price per gram, divide the ounce price by 31.1035. This calculation excludes fabrication, dealer premiums, tax and delivery; it is not a retail buyback quote.
Bid and ask have different roles
For a typical CFD, a buy opens at the ask and closes at the bid. A sell opens at the bid and closes at the ask. If bid is 2,400.00 and ask is 2,400.40, the spread is $0.40 per ounce. An immediate round trip on 5 ounces would lose about $2 from that spread if prices were unchanged, before separate charges.
A lot is defined by the contract
Read the instrument specification for contract size, minimum volume and volume step. If a particular example uses 100 ounces per lot, 0.05 lot represents 5 ounces. This is an assumption for the calculation, not a universal definition. Another product or platform may use units or a different lot size.
Notional value and margin
At an assumed price of $2,400, 5 ounces create $12,000 of notional exposure. Required margin is calculated under the provider’s rules and can change. The dollar sensitivity is still $5 for each $1-per-ounce move, before charges. Available margin is not the same as a sensible position size.
Why your local gold price differs
A sterling or euro coin price includes the exchange rate and retail terms. Likewise, an account displayed in a home currency may convert dollar profit at a different rate from the rate used at entry. Record both the gold units and account currency when comparing statements. Finally, confirm market breaks and order rules rather than assuming a gold symbol trades continuously.
Educational information, not a personal investment recommendation. All numerical examples are hypothetical, not live quotes. Product availability, protections and tax treatment depend on your residence and the contracting entity. Leveraged trading can cause rapid losses; a stop order does not guarantee its execution price.
Continue with the gold learning guides
- Gold trading for beginners: products, costs and risk
- How to calculate XAUUSD profit, loss and position size
- Gold trading costs: spread, commission and overnight financing