1. Set up your account and platform
Start by choosing a licensed broker that offers MetaTrader 5 and lists gold as XAUUSD (or XAUUSD.m at some brokers). After registering and depositing, install MT5 on desktop or mobile and log in.
Only deposit money you can afford to lose entirely, and start on a demo account if you are new, until execution becomes second nature.
2. Check the contract specification first
A step most beginners skip even though it defines your entire risk. In MT5, right-click the XAUUSD symbol and open "Specification" to find:
- Contract size: how many ounces one lot represents at your broker.
- Minimum volume: does it allow 0.01 lots, or less?
- Typical spread and overnight swap charges.
These figures differ between brokers, and they determine pip value and therefore your position size. Never assume them — verify.
3. Understand how the gold price is read
XAUUSD quotes two prices: the bid (sell) and the ask (buy), and the gap between them is the spread — your entry cost. A price of 2400 means one ounce equals $2,400.
Movement is measured in pips, whose cash value depends on lot size. Note that a buy opens at the ask and closes at the bid, so every trade starts with a small loss equal to the spread that price must overcome before you profit.
4. Open the trade with clear orders
Choose "Buy" if you expect gold to rise and "Sell" if you expect it to fall. In the order window always define:
| Field | What goes in it |
|---|---|
| Volume | The calculator's output, not an arbitrary number |
| Stop-loss (SL) | Beyond a level that invalidates your idea |
| Take-profit (TP) | A realistic target of at least 1.5× your risk |
Example: buy 0.01 lots at 2400 with a stop at 2390 and target at 2420 — $10 of risk per ounce against a $20 target, a 1:2 ratio. Use the position-size calculator to set the correct volume.
5. Manage the trade after entry
After entry the hardest part is not interfering. Let the stop and target do their work.
- Never move the stop further away as price approaches it — that turns a calculated loss into an open-ended one.
- Moving the stop toward profit is fine to lock in gains (a trailing stop).
- Watch swap fees if you intend to hold overnight.
Record your reason for entering and the outcome in a journal; a weekly review is the fastest way to surface recurring errors. See common mistakes.