Need help calculating pips for gold
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@brenda_lesotho
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15 hours ago
Okay, like from my screenshot the spread on xauusd is 0.4 pips but what is the USD value of this 0.4 pips when trading 0.1 lot size?
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@headies25284
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15 hours ago
Quoted - brenda_lesotho
Okay, like from my screenshot the spread on xauusd is 0.4 pips but what is the USD value of this 0.4 pips when trading 0.1 lot size?
4dollar is the answer. I will help you with the calculation.
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@headies25284
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15 hours ago
Quoted - headies25284
4dollar is the answer. I will help you with the calculation.
Gold contract size
1.0 lot = 100 oz
0.1 lot = 10 oz
Spread cost formula
Spread cost = Spread × Ounces
spread is 0.4
So:
Spread cost = 0.40 × 10
Spread cost = $4.00
The 0.40 spread on XAUUSD at 0.1 lot = $4.00 cost.
This means when you open a 0.1-lot gold trade, you start the trade –$4 because of the spread.