How to Calculate Position Size in Gold Futures

Position sizing tells you how many gold futures contracts you can trade without risking more than your plan allows. The calculation uses your maximum dollar risk, the distance from entry to stop loss, and the value of each point for the contract you trade.

The gold futures position-size formula

Contracts = Maximum dollar risk ÷ (Stop distance in points × Dollar value per point)

Always round the result down to a whole contract. Rounding up would put more money at risk than the amount you selected.

GC and MGC contract values

Contract	Value per point	Minimum tick	Value per tick
GC — Gold	$100	0.10 point	$10
MGC — Micro Gold	$10	0.10 point	$1

GC moves $100 for every full point per contract. MGC is one-tenth the size and moves $10 per full point. That smaller value can make MGC easier to size for a smaller account or a wider stop.

Position-size example

Assume your account is $25,000, your risk limit is 1%, and your stop is 2.5 points away.

Dollar risk: $25,000 × 1% = $250.
Risk on one GC: 2.5 × $100 = $250.
GC size: $250 ÷ $250 = 1 contract.
Risk on one MGC: 2.5 × $10 = $25, so $250 ÷ $25 = 10 contracts.

Result: The planned risk supports either 1 GC or 10 MGC before commissions and possible slippage.

How to calculate with ticks

Contracts = Maximum dollar risk ÷ (Stop ticks × Dollar value per tick)

A 25-tick stop risks $250 on one GC because 25 × $10 = $250. The same stop risks $25 on one MGC because 25 × $1 = $25.

Common sizing mistakes

Choosing contract quantity before deciding where the trade is invalidated.
Confusing points and ticks. In GC and MGC, one full point equals 10 ticks.
Rounding up instead of down.
Ignoring commissions and slippage.
Using an entire daily loss limit as the risk for one trade.

Gold futures position-size FAQ

Should a beginner trade GC or MGC?

Use the contract that keeps the trade below your risk limit. MGC provides smaller $10-per-point increments, while one GC moves $100 per point.

Can position sizing prevent a loss?

No. It cannot predict the outcome. It controls the planned damage if the stop is reached.

Put the guide into practice

Open the matching Garner Gold tool and use the steps from this article.

Open Position Size / Risk Calculator View all guides

Educational information only—not financial advice. Futures trading involves substantial risk of loss. Verify current exchange specifications and prop firm rules before trading.