How the calculation works
Gross P/L = (exit price − entry price) × ounces for a long, or the reverse for a short. Net P/L = gross P/L − estimated spread cost per ounce × ounces.
Worked example
A 10-troy-ounce long position entered at $2,400 and closed at $2,425 has a $250 gross gain. If the spread cost is $0.50 per ounce, the model gives $245 net before overnight financing or other charges.
How to interpret the output
- P/L scales with price change times actual gold exposure in ounces.
- A short position gains from a price fall and loses from a rise, before costs.
- The underlying notional value is not the same as cash margin required for a leveraged CFD.
Important limitations and assumptions
- Contract size, tick value, account currency and market hours vary by broker and instrument.
- Swaps, commissions, slippage and currency conversion are omitted.
- This models XAU/USD price exposure, not ownership of bullion.
Important: This is a transparent arithmetic illustration, not a trading forecast. Live spreads, execution, broker rules and investor protections can affect actual outcomes.