Troy Ounce
Also known as: oz t
The standard unit of measurement used globally for weighing precious metals, equivalent to exactly 31.1034768 grams.
Plain-English Meaning
A Troy Ounce is the traditional weight system specifically used for gold and silver. It is slightly heavier than the standard "avoirdupois" ounce you use in the kitchen or grocery store.
Why It Matters
In financial markets, when the price of Gold (XAUUSD) moves up by $1.00, it means the value of exactly one Troy Ounce has increased by one US dollar. All gold lot sizes and calculations are based on this unit.
Simple Example
Trading one standard lot of Gold (100 ounces) means you are controlling a contract size representing 100 Troy Ounces of the precious metal.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Assuming a standard ounce and a Troy ounce are identical. Calculating physical gold value using the standard ounce (28.35 grams) will result in incorrect and undervalued pricing.