Under the current trading rules of Lucky Gold, when placing pending orders, stop-loss or take-profit orders for London Gold under normal conditions, the set price must maintain a minimum distance of 200 pips from the prevailing market price. One pip for London Gold equals 0.01 US dollars, so 200 pips correspond to 2 US dollars.

This “200 pips” refers to the price gap and is calculated separately from the trading spread. Many new traders get confused at this point and often mistake 200 pips for 200 US dollars. Once you remember that 1 pip = 0.01 USD, the calculation becomes straightforward.

How 200 pips converts to 2 US dollars

The minimum price fluctuation unit for London Gold is 0.01 US dollars. Therefore: 100 pips = 1 US dollar 200 pips = 2 US dollars 500 pips = 5 US dollars

Assume the current market price of London Gold is around 4300 US dollars. If a pending order requires a minimum 200-pip distance, the order price must differ from the market price by at least 2 US dollars. Whether the order price should be set above or below the market price depends on the order type.

Why will the system reject orders placed too close to the market price?

The trading system verifies the pending order distance against real-time market quotes. If your entered price falls within the prohibited minimum distance, the system may reject the submission. Repeatedly clicking “Confirm” will not work. You need to recheck the gap between your pending price and the live market price.

Another common scenario occurs as well. The market price satisfies the distance requirement when you start filling out the order; however, the market moves while you are typing. By the time you submit, the original gap of more than 2 US dollars has narrowed, triggering a fresh validation check by the system. This happens frequently during fast-moving markets.

Stop-loss and take-profit are also subject to the distance rule

The 200-pip rule applies not only to entry pending orders. According to the current FAQ guidelines, settings for pending orders, stop loss, take profit and trailing stop for London Gold and London Silver all need to meet the corresponding minimum price distance requirements.

One pip for London Gold is 0.01 US dollars. London Silver has a different minimum tick size, with one pip equal to 0.001 US dollars. Hence 200 pips on London Silver equals 0.2 US dollars. Do not apply the pip conversion of gold directly to silver.

Is the 200-pip threshold sufficient during high-volatility conditions?

During major data releases, extreme price swings or periods of low market liquidity, the required pending order distance may be temporarily widened. Lucky Gold’s current stop-loss protection statement specifies that under volatile market conditions or poor liquidity, the minimum pending order distance for London Gold may rise to 1500 pips, while that for London Silver may increase to 2000 pips.

The 200-pip baseline applies for normal market hours. When events such as Non-Farm Payrolls, Fed interest rate decisions or sudden sharp market moves take place, you must follow the active rules shown on the system at that time. This explains why a pending price that works on ordinary days may prompt an “insufficient distance” error right before key data releases.

Will the 200-pip requirement affect profit and loss?

It primarily determines whether your order can be submitted successfully. Actual profit or loss is calculated based on entry price, exit price, trading lot size and trade direction. For example, one lot of London Gold represents 100 troy ounces. A 1-dollar price move results in floating profit or loss of approximately 100 US dollars. A 2-dollar price change corresponds to roughly 200 US dollars per lot.

Although the figure of 2 US dollars appears in both the distance rule and the P&L calculation, these are two distinct concepts and should not be mixed up. One controls the valid placement range for orders, while the other calculates the floating profit or loss from price movements after opening a position.

Checking live quotes and calculating your pending price before submitting an order is much more efficient than revising settings after receiving a system error.

Risk Warning: Rapid price shifts, price gaps and liquidity fluctuations may occur during major market events. When placing pending orders and stop-loss levels, follow the valid acceptable prices displayed on your trading terminal at that moment.