Read both sides
Suppose the bid is $2,400.10 and the ask is $2,400.40 per ounce. The spread is $0.30 per ounce. A market buy generally starts at the ask and a market sell at the bid, subject to execution.
VCM / TRADING GUIDES
How to Calculate the XAU/USD Spread
The spread is the ask minus the bid. Check both quotes for the same instrument at the same instant before estimating the cost.
Translate the gap into dollars
At five ounces, the displayed spread represents $1.50. Check the broker contract size before converting lots to ounces. Commissions and slippage can change the actual cost.
Check the spread at execution
Save the quote and compare it with the fill in the platform history. Repeat at different times to see how the instrument behaves around session changes.
Continue your research
XAU/USD Trading Hours and Session Breaks
Check your broker’s gold trading hours, daily breaks, holidays and platform timezone.
Gold Position Size Worked Example
Work through XAU/USD position sizing using a cash risk budget, stop distance and broker contract size.
Risk-to-Reward Ratio With a Worked Example
Calculate planned trade risk, potential reward and the break-even win rate before costs.
Risk and drawdown calculators
Calculate a risk budget and explore the gain required to recover from a loss.
PREPARE YOUR ENQUIRY
Make the first conversation useful.
- What bid, ask and position size are you comparing?
Published by Vertex Capital Markets. General information, not personalized advice. Trading can result in substantial losses. Scope and service availability require confirmation.