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Module 6 · Gold products and risk

Gold products and risk — Trading Academy

Check what an XAU/USD quote represents and translate the actual contract specification into exposure.

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First lesson: Identify the gold product. No sign-up required.

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Lesson 1 of 2

Identify the gold product

Not completed

By the end of this lesson

  • Distinguish a quoted gold price from a product’s contract size.
  • Recognise that CFDs, futures and physical holdings have different mechanics.

Suggested preparation: Separate margin from risk, Include costs consistently

Read the reference guide

Work it through

For a hypothetical symbol, write its quote unit, ounces per lot, minimum size, lot increment and financing assumptions. Leave unknown specifications unresolved rather than guessing.

Check your understanding

1. What does an XAU/USD price commonly express?
2. Why should a gold CFD assumption not automatically be copied into a gold futures calculation?

Lesson 2 of 2

Translate gold lots into cash risk

Not completed

By the end of this lesson

  • Convert a price move into loss per lot using stated ounces.
  • Reserve costs and apply the permitted size increment.

Suggested preparation: Identify the gold product, Calculate a position size

Read the reference guide

Work it through

With an illustrative 100 ounces per lot and a USD 10-per-ounce stop distance, calculate loss per lot. Apply a USD 100 budget, USD 5 reserve and 0.01-lot increments.

Check your understanding

1. For a hypothetical contract of 100 ounces per lot, what price loss does a USD 10-per-ounce adverse move create at one full lot?
2. Loss per lot is USD 1,000. With a USD 100 budget, fixed USD 5 reserve and 0.01-lot increments, what is the largest modelled size within budget?

Prepared by InsomniCapital. Checked 2 October 2026. Sources and detailed assumptions appear in each linked guide. Read the risk disclosure.