How it's calculated
The stop distance in pips is the gap between entry and stop divided by $0.10. A trade from 4,125.00 with a stop at 4,115.00 has a $10 stop, which is 100 pips. Risking 1% of $5,000 ($50) over 100 pips at $10 per pip per lot gives 0.05 lots.
Worked example: a real signal
VIP trade #12 on 16 October 2026 was a sell at 4180.1 with the stop at 4187.6: a $7.50 stop, which is 75 pips. Risking 1% on three account sizes:
| Balance | 1% risk | Exact size | Lots to use | Actually risked |
|---|---|---|---|---|
| $500 | $5.00 | 0.0067 | Below 0.01 | Skip, or risk more |
| $2,000 | $20.00 | 0.0267 | 0.02 | $15.00 |
| $10,000 | $100.00 | 0.1333 | 0.13 | $97.50 |
On $500 even the smallest position (0.01 lots) risks $7.50 on this trade, which is 1.5% of the account. Small accounts either skip wide-stop trades or accept more than 1%. That's a decision to make before the signal arrives, not after.
Keep in mind that your broker's spread is part of the stop: on gold it's typically 2 to 4 pips ($0.20 to $0.40), and much wider around major news. See where to place a stop loss on gold.