Calculating Metals P&L

Calculating profit and loss

Profit and loss calculations for spot gold and silver are fairly simple.

Both gold and silver trade in lots, and the smallest trade you can place is 1 lot. 

For gold, 1 lot is 10 troy ounces, and the smallest price increment (pip) is 0.01. This means that a one pip movement in the gold price represents a $0.10 price movement for each lot that you are trading. (1 cent x 10oz)

For silver, 1 lot is 500 troy ounces, and the smallest price increment (pip) is 0.001. This means that a one pip movement in the silver price represents a $5 price movement for each lot that you are trading. (1 cent x 500 oz)