Trading Gold in a Prop Firm Evaluation: XAU/USD Sizing Guide

Why gold needs its own plan

XAU/USD is one of the most popular instruments in prop firm evaluations, and for good reason: it moves, it trends, and it reacts clearly to US economic data. Those same qualities make it the easiest way to breach a daily loss limit if you size it like a currency pair.

The problem is simple. A standard lot of EUR/USD and a standard lot of gold are not the same risk, not even close. Traders who move from currencies to gold without changing their sizing math are taking far more risk per trade than they think. This guide gives you that math.

Gold contract math in one paragraph

A standard lot of gold is conventionally 100 ounces, so every $1 move in the gold price is worth $100 per standard lot, $10 per 0.1 lot and $1 per 0.01 lot. Confirm the contract size on your order ticket before your first trade. From there, every gold position comes from one line:

Gold lot size = Risk in dollars ÷ (Stop distance in $ per ounce × 100)

Worked example: a $50K one step

The account is $50,000. The daily loss limit is 3% of day open equity, $1,500 on day one. You risk 0.5% per trade, which is $250.

• Stop of $5 per ounce: $250 ÷ ($5 × 100) = 0.5 lots.
• Stop of $10 per ounce: $250 ÷ ($10 × 100) = 0.25 lots.
• Stop of $20 per ounce: $250 ÷ ($20 × 100) = 0.125 lots, so round down to 0.12 lots.

Now the common mistake. A trader used to 2 lots of EUR/USD with a 20 pip stop risks about $400 a trade (20 pips × $10 × 2 lots). Put the same 2 lots on gold with a $10 stop and the risk is $2,000, more than the entire daily allowance. One normal losing trade ends the evaluation.

What the 1:30 leverage cap actually allows

Metals on Funded With Forex carry a 1:30 leverage cap, enforced at fill time and scaled with your equity: maximum notional equals current equity times 30. On a $50K account that is $1.5 million of gold notional.

To see what that means in lots, divide by the value of one lot. For round numbers, say gold is at $3,000 an ounce; use the live price for your own math. One standard lot would then be $300,000 of notional, and the cap would allow about 5 lots. The higher the gold price, the fewer lots the cap allows.

Here is the point. 5 lots with a $10 stop is $5,000 of risk, more than three times the daily allowance. The leverage cap is not a sizing guide. It is a ceiling you should never be near. On a gold trade the daily loss limit binds long before leverage does, so size from the limit, never from the cap.

Stops: wide enough to survive, small enough to afford

Gold's swings are wide in dollar terms, which pushes traders toward one of two errors: a tight stop that ordinary noise takes out, or a wide stop paired with the same lot size, which multiplies the risk.

The fix is to set the stop where the trade idea is proven wrong, then let the formula shrink the position to fit. A $15 stop is fine as long as the lot size is a third of what you would use with a $5 stop. Fewer lots, more room, the same dollar risk.

Gold and US economic data

Gold reacts sharply to US data: inflation prints, the monthly jobs report and Federal Reserve decisions. News trading is allowed on Funded With Forex, and our spreads are fixed, so they do not widen when the data hits. That removes one common news risk. It does not remove the move itself. In a fast market, price can travel past your stop before the order fills, and a stop that was meant to cost $250 can cost more.

If you trade the release:

• Cut size before the event. Half your normal risk is a sensible starting point for the first trade after a major release.
• Know your remaining daily allowance first. If a stop that fills worse than planned would take you past the daily limit, the trade is too big.
• Do not hold a full size position into the number unless you are prepared for the stop to fill beyond your price.

If you do not trade the release, step aside a few minutes before it and let the first move settle. Our session timing guide covers the liquid hours when US data lands.

Gold and the consistency rule

Gold's range means a good gold day can be very good. On an evaluation, no single day can count for more than 50% of the profit target: $2,500 on a $50K one step. Once a winning day is near that cap, extra size only adds risk, because profit above the cap does not count toward passing. The consistency rule guide explains the math.

Gold and the drawdown floor

Volatile instruments are where the type of max loss floor matters most. Our floor is static: 6% below the starting balance on the one step, and it never moves. Under a trailing floor, a strong gold run lifts the line behind you, and gold's normal pullbacks can then reach it. FTMO, for example, uses a trailing floor on its one step and a static floor on its two step, per FTMO's published rules (verified 2026-08-10). Our FTMO comparison and trailing drawdown explainer cover why that matters.

Is the 2 step better for gold traders?

It can be. The 2 step allows a 5% daily loss and a 10% static max loss in both phases, against 3% and 6% on the one step. If your gold strategy needs wider stops and accepts bigger intraday swings, that room matters. The cost is a second phase with its own target. See the one step vs two step breakdown.

A gold checklist for evaluations

• Confirm the contract size on the order ticket before your first trade.
• Set the stop where the idea is wrong, then calculate lots from your dollar risk.
• Keep risk per gold trade at or below what you use on currencies.
• Never size from the leverage cap. Size from the daily loss limit.
• Halve your size around major US data, or stand aside.
• Stop adding size once a winning day is near the consistency cap.

Gold earns its place on an evaluation watchlist when the sizing is disciplined, as we argued in our guide to the best pairs for prop firm evaluations. The full rule set, leverage caps included, is on the evaluation rules page and the funded forex account guide.

Common questions

Can I trade gold on a Funded With Forex evaluation? Yes. Metals like XAU/USD are available alongside forex, indices and energy, with a 1:30 leverage cap on metals.

Is news trading allowed? Yes. Spreads are fixed and do not widen on news, but a fast move can still fill a stop beyond your planned price.

How much is a $1 move in gold worth? $100 per standard lot of 100 ounces, $10 per 0.1 lot and $1 per 0.01 lot.

How many lots of gold can I trade on a $50K account? As many as your dollar risk allows, and no more. With $250 of risk and a $10 stop that is 0.25 lots, far below what the leverage cap would permit.