Calculating Gold P&L
Profit and loss calculations for spot gold are fairly simple. The smallest increment of a spot gold price is 0.01. The smallest trade you can place in spot gold is a single lot, or 10 troy ounces. At this level, each pip is worth $0.10. A change in price from 920.55 to 920.85 means a difference of 0.30, or 30 pips. If you are trading 1 lot, and each pip is worth 10 cents, then the profit or loss from this trade would be $3.00.
If you decide to trade more than one lot, the value of each pip is simply multiplied by the number of lots you are trading. Rather than each pip being worth 10 cents, if you are trading 5 lots then each pip is now worth 50 cents.
