Points vs Pips: Why a Gold EA's Stop Is 10x Off
TL;DR MetaTrader counts in points - the last decimal of the quote. On a two-decimal gold feed a point is $0.01, and a pip is $0.10, so 1 pip = 10 points. An EA input labelled StopLoss = 300 almost always means 300 points, which is a $3.00 move, not a $30 one. Check the unit before you trust the number.
Where the confusion comes from
Forex traders learn that a pip is the fourth decimal. Gold trades in four figures quoted to two decimals, so that definition cannot survive the move to XAUUSD. Brokers settled on a pip being a $0.10 move instead.
MetaTrader never used pips internally. It counts points — one unit of the final decimal place. On a quote like 2400.00 a point is a cent. On a three-decimal feed it is a tenth of a cent. The platform does not care what traders call it.
So the same stop can be written three ways, all correct: $3.00 of price, 30 pips, or 300 points. Three numbers, one distance.
The table every EA operator should have
| Price move | Pips | Points (2-dec feed) | Cost at 0.01 lots | At 0.10 lots |
|---|---|---|---|---|
| $0.10 | 1 | 10 | $0.10 | $1.00 |
| $1.00 | 10 | 100 | $1.00 | $10.00 |
| $3.00 | 30 | 300 | $3.00 | $30.00 |
| $10.00 | 100 | 1,000 | $10.00 | $100.00 |
Read across one row before typing anything into an EA input box.
How to tell which unit an input wants
Vendors are inconsistent, so test rather than assume:
- Read the tooltip. Hover the input in the EA properties. Good vendors write "in points" there.
- Look at the default. A default stop of 200-500 is points. A default of 20-50 is pips. A default of 2.00-5.00 is price.
- Run one trade on demo and measure the distance the EA actually sets. This is the only answer that cannot be wrong.
The third one takes five minutes and settles it permanently for that EA.
What goes wrong in practice
Stops ten times too tight. A trader wanting a $3.00 stop types 30, the EA reads 30 points, and every trade now has a 30-cent stop that the spread alone can trigger. The symptom is a stream of tiny losses that look like bad entries and are actually a unit error.
Stops ten times too wide. The reverse: 300 typed where pips were expected. The position survives longer and then loses ten times what the risk plan allowed. One trade can do the damage of ten.
Trailing stops that never move. A trailing step set in the wrong unit is either so small it triggers constantly or so large it never arms. Both look like a broken EA.
Three-decimal brokers
Some brokers quote gold to three decimals — 2400.123. The pip is unchanged at $0.10, but a point is now $0.001, so a pip is 100 points, not 10.
An EA configured on a two-decimal broker and moved to a three-decimal one will have every point-based input off by a factor of ten, silently. If you change broker, re-check the digits before re-running the same preset. Our preset file guide covers moving settings between terminals safely.
The check that takes thirty seconds
Before a preset goes anywhere near a funded account: open the gold pip calculator, enter the lot size and the stop as you have configured it, and read the dollar cost. If the number is not what you intended to risk, you have found a unit error before it found you.
Then confirm the lot size itself with the lot size calculator — the two together turn an EA setting into a figure you can actually sanity-check.
Questions we get
Is a pip the same as a point on gold?
No. On a standard two-decimal gold feed a pip is a $0.10 move and a point is $0.01, so one pip equals ten points. MetaTrader works in points, which is why EA inputs look ten times larger than traders expect.
What does StopLoss = 300 mean on a gold EA?
Almost always 300 points, which is a $3.00 move in the gold price. At 0.01 lots that is $3 of risk, at 0.10 lots $30. If the input were in pips, 300 would be a $30 move - ten times more.
How do I check which unit my EA uses?
Run a single trade on demo and measure the stop distance the EA actually places against the entry price. The tooltip and the default value are good clues, but a live measurement is the only answer that cannot be misread.
Why does my gold EA get stopped out immediately?
The most common cause is a stop set in points when pips were intended, making it ten times tighter than planned. On gold the spread alone can then close the trade. Check the distance in dollars before blaming the strategy.
Does the point size change between brokers?
Yes. On a three-decimal gold feed a point is $0.001, so a pip is 100 points rather than 10. Moving a preset from a two-decimal broker to a three-decimal one puts every point-based input out by a factor of ten.
Not sure what your preset is actually risking?
Send us the settings and we will read them back to you in dollars before you run them live.
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