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How to trade gold (XAU/USD)

A plain, practical guide for traders in Kenya — lots, leverage, margin, costs and the risk rules that keep beginners in the game.

xau/usd · one bar, one hourTARGETENTRYSTOP
A plan is three prices decided before the entry, not after.

Gold (XAU/USD) is traded as a CFD — you speculate on the price, you don't own the metal or coin. One standard lot is 100 oz.

Lots, leverage and margin

Margin is what your broker locks to open a position: (lots × 100 × price) ÷ leverage. At 1:500 a 0.10 lot needs $85.50. Use the margin calculator.

Size to a fixed risk

Decide the money you'll lose at your stop first, then let the position-size calculator pick the lot. Never size by how much margin you have.

A first gold trade, in the order the steps actually happen.A first gold trade, in the order the steps actually happen.RISKMoney you accept losingSTOPWhere the idea is wrongSIZEArithmetic, not instinctCOSTSpread plus swap
A first gold trade, in the order the steps actually happen.

Costs

You pay the spread on entry and an overnight swap if you hold. Factor both into every trade.

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FAQ

Common questions

What are the actual steps of placing my first gold trade?

The steps are: pick the direction and the level, set the stop first, size the position from that stop, then enter. On MT4, MT5, cTrader or the FxPro app you enter the lot size and the stop level before confirming. Use the position size calculator to convert your shilling risk into lots, and the pip value calculator to check what each pip costs at that size.

How do I work out my lot size for a gold trade?

Work backwards from the loss you accept. Decide the stop distance in pips, decide the shilling amount you are willing to lose, convert that to dollars, then divide by pip value times pips. The position size calculator does this for you. For reference, at the applicable leverage cap a 0.10-lot position needs about $85.50 margin, but margin is a requirement, not a measure of risk.

Where should I put my stop loss on XAU/USD?

Place the stop where your reason for the trade is proven wrong, not at a round number you find comfortable. Gold's daily range is wide, so a stop that is too close will be hit by ordinary noise. Once you have the level, size the position around it rather than moving the stop to fit a bigger lot. The pivot points tool can help you see nearby reference levels.

How do I fund the account and withdraw from Kenya?

The familiar route for Kenyan traders is M-Pesa, and the broker's own deposit page shows the exact steps and any conversion applied. Withdrawals go back through the method you used where possible. Check the USD/KES rate at the time, because your shilling cost and your shilling proceeds are both affected by it, and keep records for your own accounting.

What should I check before pressing the buy or sell button?

Check four things: the direction and the level, the stop distance in pips, the lot size that fits your risk, and the margin the position will use. Then check the event calendar for US data that could gap the price. If any of the four is unclear, do not press the button. Use the margin and profit calculators to see the numbers before the trade, not after.