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Cut is oftentimes confused with the shape of a diamond. The most common diamond shape used in jewellery is the standard round brilliant. All other diamond shapes are known as fancy shapes. Traditional fancy shapes include the marquise, pear, oval and square. Cushion, triangle, and a variety of others are also gaining popularity in diamond jewellery.

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Diamonds are weighted to one-hundredth of a carat and are priced according to their weight. Weight also relates to size, although the carat does not directly measure the diamond size.

The GIA Cut Grading System for the standard round brilliant diamond evaluates seven components. The first three, brightness, fire, and scintillation, consider the diamond's overall face-up appearance. The remaining four, weight ratio, durability, polish, and symmetry, assess a diamond's design and craftsmanship.

The cut has the greatest influence on the brilliance of the diamond. Poor cutting, such as a thin girdle, will affect the durability of a diamond, making it more susceptible to breaking of chipping. A sloping table, misaligned facets or poor symmetry will prevent light traveling through the stone properly and so affects the brilliance.

Colour is best observed by examining the stone through the pavilion, with the table upside down on white card. If the stone is viewed through the table, the brilliance will hide the colour. Grade D carries a significant premium.

Diamond clarity is the presence or absence of internal inclusions or surface blemishes.

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Polish refers to the finish of the facets of the diamond. Polish grades of Very Good or higher have the minimal effects on the brilliance of the diamond.

The symmetry, describing the alignment of the facets of the diamond, has great influence on the brilliance of the diamond. Poor symmetry will prevent light traveling through the diamond properly and thus affect the brilliance.

A diamond that produces a colour reaction when exposed to ultraviolet (UV) light is described as having fluorescence. In diamonds with strong or very strong fluorescence, the diamonds may appear hazy or oily, hence decreasing the value of the diamond.

Hearts and Arrows diamonds are precision-cut variations of the traditional 57 faceted round brilliant cut. They are cut to ideal proportions with good optical symmetry, polish and a specific faceting pattern. When all these factors are present, the result is a repeatable, near perfect pattern of eight symmetrical arrows in the face-up position of the stone (called 'crown') and eight symmetrical hearts when viewed in the table-down position (called 'pavilion'). The term "Ideal Cut" is also often used to describe diamonds displaying such perfect optical symmetry.