Unit hierarchy
Course context: This lesson belongs to a practical beginner curriculum for Pakistan.
| Term | Meaning | Do not confuse with |
|---|---|---|
| XAU | ISO unit for one troy ounce of gold | One broker lot |
| Troy ounce | Approximately 31.1035 grams | Avoirdupois ounce |
| XAUUSD price | USD per one troy ounce | Cash value of an entire lot |
| 1 XAUUSD lot | 100 troy ounces nominal exposure | Ownership of 100 ounces |
| 0.01 lot | One nominal troy ounce | A physical ounce delivered to client |
Cash movement formula
P/L before costs = price change in quote currency per ounce × 100 × lots. If XAUUSD moves USD 12 and volume is 0.02 lot, gross movement is 12 × 100 × 0.02 = USD 24. For XAUEUR, the same calculation produces EUR before conversion to the account currency.
Common XAU pairs
| Symbol | Quote currency | Key planning issue |
|---|---|---|
| XAUUSD | US dollar | Most common benchmark; ordinary session/rollover rules |
| XAUEUR | Euro | EUR P/L and conversion if account currency differs |
| XAUGBP | Pound sterling | GBP spread/commission and conversion |
| XAUAUD | Australian dollar | Different session liquidity and Zero commission |
| XAUUSD247 | US dollar | Separate seven-day instrument with SPO/fixed margin |
Before trading any XAU symbol
- Confirm symbol suffix and account type.
- Open the exact contract specification.
- Record contract size, volume, margin, commission and swap.
- Convert stop distance to quote-currency cash loss.
- Convert P/L to account currency if necessary.
- Add spread, both commission sides and holding cost.
- Check HMR, rollover and holiday hours.
Ownership boundary
The ISO XAU code describes a standardized metal unit, but the Exness product is a commodity CFD settled by price difference. It provides no allocated bar, vault title or delivery right. This matters for portfolio classification, legal disclosure and Shariah analysis.
Official references
ISO 4217 scope for currencies and precious metals · Exness XAU contract specifications
Questions from a first-time learner
How many grams are in one XAU?
One XAU represents one troy ounce, approximately 31.1035 grams.
Is one Exness gold lot one XAU?
No. XAUUSD contract size is 100 troy ounces per lot.
Does 0.01 lot deliver one ounce?
No. It creates one nominal ounce of CFD exposure without metal ownership.
Why does quote currency matter?
Price movement and initial P/L are expressed in that currency before any account-currency conversion.