What is XAUUSD?

XAU is the international symbol for gold (from the Latin Aurum), and USD is the US dollar. XAUUSD simply expresses the price of one ounce of gold in dollars — the same way EURUSD expresses the price of the euro against the dollar.

When the price moves, that's the price of one ounce (about 31.1 grams) rising or falling against the dollar in real time.

In terms of value — yes, it's the same metal, priced off the same global benchmark set in London and New York. But how you actually deal with it is completely different:

• Physical gold: you pay in full, you take physical delivery, you pay making charges and tax, and reselling takes time and effort.
• Trading XAUUSD (a CFD): you trade a contract that tracks gold's price without owning the metal — instant liquidity, and the ability to go long (expecting a rise) or short (expecting a fall).

When people talk about "trading gold" on MT5, they're not buying a physical bar — they're trading a Contract for Difference (CFD) that mirrors the global gold price:

• No storage or insurance for a physical asset
• You can open positions far smaller than the value of physical gold, thanks to leverage
• You can profit from both rising and falling prices (shorting)
• In return, you never actually "own" anything physical — it's a purely price-based relationship

1. Instant liquidity: you can enter and exit in seconds, nearly 24 hours a day, Monday to Friday.
2. Smaller capital: thanks to leverage, you can open a larger position than your actual capital would otherwise allow (a double-edged sword — covered in its own guide).
3. No storage or insurance costs, unlike physical gold.
4. Profit potential in both directions (up and down).

Absolutely — like any leveraged instrument, gold's price can move sharply, especially around major economic releases. The same leverage that helps you profit faster is what makes losses move faster too if the market goes against you.

That's why basic risk management (like a Stop Loss order) isn't optional — we cover it in detail in the "Your first trade on MT5" guide.