# XAUUSD Pip Calculator – How to Calculate XAUUSD Pip Value

Apr 13, 2023Forex Calculator

US\$ 0

The XAUUSD pip calculator in Forex represents a Forex calculator that calculates the value of a XAUUSD pip in the currency you want by defining following values:

• number of pips
• lot size used
• currency pair
• deposit currency

Why do you need XAUUSD pip calculator?

You can calculate the value for a number of XAUUSD pips. And that means for example if you have 100 pips as a stop loss or take profit set, then you can calculate how much that will be in terms of a currency you select.

How to use the XAUUSD pip calculator?

Inside the XAUUSD calculator you have several fields you need to fill with the data. And those are the number of pips, XAUUSD currency pair, deposit currency and lot size. At the end you click the button Calculate and you get the value of XAUUSD pip.

In this article I will show you all details you need to know about XAUUSD pip calculator and what you can get with using it, why you should use it to speed up the process of calculating pip value and how to use it so you do not get confused when looking at pip calculator.

Read more: What is Pip Calculator

## XAUUSD Pip Calculator Example

The best way to explain how the XAUUSD calculator works is to show an example. I will make a few examples so you can see the difference in calculations.

NOTE: Very Important

When trading Gold or Commodities like Silver it is important to know what is the contract size on a trading platform.

What does that mean?

In Forex when you check the contract size it says that one standard lot is 100,000 units of base currency. So, the contract size for 1.0 lot is 100,000.

In Commodity like Gold the broker will define what the contract size will be on the trading platform. So, they can define a contract size of 1.0 in MT4 not to be 100,000 units, but for example 1.0 = 100 units.

So, when you make calculation of a pip value on Gold or any other Commodity where 1.0 is not equal to 100,000 units then you need to pay attention to this.

Let’s say a broker defines that the contract size is 100 units. That would mean that 1 standard lot or if you are trading in MT4 this would be

Volume = 1.0 = 100 units Take a look in the image above where you can see that IC markets broker has defined that a contract size in MT4 will be equal to 1.0 standard lot.

This will have influence on the gold pip calculation. Let me show you that.

Read more: What is XAU in Forex

First example is when you have XAUUSD currency pair with USD as a deposit currency:

• Number of pips: 1
• Instrument: XAU/USD
• Lot size: 1.00 (100,000 units)
• Deposit currency: USD
• XAUUSD pip size: 0.01

Second example is when you have XAUUSD currency pair with EUR as a deposit currency:

• Number of pips: 1
• Instrument: XAUUSD
• Lot size: 1.00 (100,000 units)
• Deposit currency: EUR
• XAUUSD pip size: 0.01

You can see that here you have examples where one contract is equal to 100,000 units, and not to 100 units like IC markets broker has defined.

Here is an example how this would look with IC markets:

• Number of pips: 1
• Instrument: XAUUSD
• Lot size: 1.00 (100 units)
• Deposit currency: USD
• XAUUSD pip size: 0.01

### How to Calculate Pips for XAUUSD

To calculate pips for XAUUSD you need to use following formula which defines the pip value:

For deposit currency which is equal to base currency, XAU:

Pip value = (Pip / Current market price) x Lot size

For deposit currency which is equal to quote currency, USD:

Pip value = Pip x lot size

### XAUUSD Pip Value

Now with the formula you have you need to use the first formula where the deposit currency is XAU.

#### Pip Value for Base Currency

For deposit currency which is equal to base currency, XAU, pip value will be equal to:

Pip value = (Pip / Current market price) x Lot size

Here are other data you need:

• Number of pips: 1
• Instrument: XAUUSD = 1,958.110
• Lot size: 1.00 (100,000 units)
• Deposit currency: XAU
• XAUUSD pip size: 0.01

Now, when you put all the data in the formula you get:

Pip value = (Pip / Current market price) x Lot size

Pip value  = (0.01 / 1,958.110) x 100,000

Pip value = (5.10e-6) x 100,000

Pip value(XAU) = 0.51

What you can see here is that the value of a pip in Gold is equal to 0.51. But, the problem here is that your account deposit currency cannot be in Gold. That means you cannot open a trading account with Gold by investing Gold as a currency.

To avoid this you would open a trading account with USD as a deposit currency. In that case you would use following calculation.

#### Pip Value for Quote Currency

For deposit currency which is equal to quote currency, USD, pip value will be equal to:

Pip value = Pip x Lot size

Here are other data you need:

• Number of pips: 1
• Instrument: XAUUSD = 1,958.110
• Lot size: 1.00 (100,000 units)
• Deposit currency: USD
• XAUUSD pip size: 0.01

Now, when you put all the data in the formula you get:

Pip value = Pip x Lot size

Pip value = 0.01 x 100,000

Pip value = \$1,000

No matter what is current market price, if your quote currency (XAU/USD), in this case is USD is equal to account deposit currency and that is USD, the value of a Gold pip will be equal to \$1000.

And the condition is to use standard lot size, 100,000 units of base currency or 1.00 Lot.

#### Pip Value for Third Currency

Third case is when you have a XAUUSD currency pair, but the deposit currency is EUR. Which is not XAU or USD.

This case requires that you make more calculations. If you use the XAUUSD calculator then the whole calculation is done by the pip calculator.

But, if you want to do it manually, then you need to use the following process.

First:

• decide in which currency you will calculate the pip value. Will that be XAU or USD

Let’s use XAU. The formula for the pip value will be:

• Number of pips: 1
• Instrument: XAUUSD = 1,958.110
• Lot size: 1.00 (100,000 units)
• Deposit currency: XAU
• XAUUSD pip size: 0.01

Pip value = (Pip / Current market price) x Lot size

Pip value  = (0.01 / 1,958.110) x 100,000

Pip value = (5.10e-6) x 100,000

Pip value(XAU) = 0.51

Second:

Now, you need to use the XAUEUR currency pair so you can extract EUR pip value from it.

Current market price for the XAUEUR = 1,808.590. Which gives us XAU = 1,808.590 EUR.

This is the same as 1 XAU = 1,808.590 EUR.

So, the formula would be:

Pip value (EUR) = Pip value (XAU) x (XAUEUR)

Pip value (EUR) = 0.51 x 1,808.590

Pip value (EUR) = 922.381

#### Pip Value for IC Markets Case

For deposit currency which is equal to quote currency, USD, pip value will be equal to:

Pip value = Pip x Lot size

Here are other data you need:

• Number of pips: 1
• Instrument: XAUUSD = 1,958.110
• Lot size: 1.00 (100 units)
• Deposit currency: USD
• XAUUSD pip size: 0.01

Now, when you put all the data in the formula you get:

Pip value = Pip x Lot size

Pip value = 0.01 x 100

Pip value = \$1

No matter what is current market price, if your quote currency (XAU/USD), in this case is USD is equal to account deposit currency and that is USD, the value of a Gold pip will be equal to \$1.

And the condition is to use standard lot size, 100 units of base currency or 1.00 Lot. Here you can see an example from MT4 platform where I have open Sell order in MT4 with 1.0 standard lot.

Here are all details about the open order:

• Currency pair: XAU/USD
• Deposit currency: USD
• Lot size or Volume: 1.0
• Entry price: 2011.61
• Stop Loss price: 2011.71
• Pip difference between entry and stop loss: 10 pips

So, I have open sell order where the stop loss was 10 pips away.

In the image you can see that the loss would be 10 pips and that would be equal to \$10.

Let’s calculate Gold pip value for this example.

Here are other data you need:

• Number of pips: 10
• Instrument: XAUUSD = 2011.61
• Lot size: 1.00 (100 units)
• Deposit currency: USD
• XAUUSD pip size: 0.01

Now, when you put all the data in the formula you get:

Pip value = Pip x Lot size

Pip value = 0.01 x 100

Pip value = \$1

Pip profit or loss is equal to:

Pip profit/loss = \$1 x 10 pips

Pip profit/loss = \$10

Because my trade has set stop loss 10 pips this would be \$10 loss.

This is the way how you calculate Gold pip profit in case of IC markets with 100 units of standard lot.

But, check other cases below to see how to calculate the pip value and pip profit of a Gold.

## How Do You Calculate XAU/USD Pip Profits?

With the above calculated you can calculate XAUUSD, Gold, pip profit.

Let’s say you have an open SELL order on the market with the XAUUSD = 1,958.11.

And you want to close the trade at XAUUSD = 1,958.05.

The price difference in pips is:

Pips = |Entry price – Exit price|

Pips = |1,958.11 – 1,958.05|

Pips = 0.06

You can see the difference is 6 pips between open and close price.

Now, the profit for 6 pips is:

Profit = Pip value x Pips

Profit = \$1,000 x 6

Profit = \$6,000

If you want to use XAU as a deposit currency then the pip value is 0.51:

Profit = Pip value x Pips

Profit = 0.51 x 6

Profit = 3.06

This means gold profit is 3.06 ounce. And when you transform ounce to USD, and to do that you need to multiply ounce with the current market price.

Current market price – \$1,958.11

Pip profit = 3.06 ounce x \$1,958.11 = \$5,991.81

The smal difference between \$6,000 and \$5,991.81 is because of rounding in calculations before. But, roughly this is the same.

## Conclusion

If you are beginner in Forex trading you will need this calculator because the calculation manually is not so easy.

Even the Forex basics is not so easy to understand, but in time you learn everything.

Use this calculator and other calculators to see how much you will make per pip so you can set stop loss and take profit properly.

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A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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