Contract size and trading hours

Before you size a trade, you need to know what one unit of gold is worth on your platform.

Contract size

On many platforms, 1 lot equals 100 ounces. That means:

• A $1 move in price is worth $100 on 1 lot.
• A $1 move is worth $10 on 0.10 lots.
• A $1 move is worth $1 on 0.01 lots.

Brokers can differ, so check the contract details on your own platform before you place a trade, even on demo.

When gold is active

Gold trades almost 24 hours on weekdays, with a short daily break on most platforms. Activity tends to pick up in the London session, and it is often strongest when London and New York overlap.

Spreads change

Spreads tend to be tighter in busy hours. They can widen sharply around major news, at the daily rollover and on quiet holidays. A wider spread can hit your stop even if the chart barely appears to move.

Key point

Write down your contract size and the value of a $1 move. Those two facts feed straight into your position size, which is the next lesson.