A trader can be correct about the direction of gold and still lose money after spreads, commissions and financing. The first unavoidable market cost in many CFD accounts is entering at one quoted price and exiting at the other.
Spread is the difference between tradable sides
The ask is generally the price paid to buy, while the bid is the price received to sell. If XAU/USD is quoted at a bid of $2,400.00 and an ask of $2,400.50, the illustrative spread is $0.50 per ounce. On a 10-ounce exposure, that is approximately $5 if measured against the same mid-price and unchanged spread. Actual entry and exit quotes determine the realized cost.
Why displayed minimum spreads are insufficient
Brokers may advertise “from” spreads observed only in especially liquid conditions. The spread can widen around market openings, unexpected news, overnight periods or thin liquidity. A comparison should specify account type, instrument, time window, typical observed spread and whether an additional commission applies.
Separate the other charges
A commission per lot is a different charge from the bid–ask spread. An overnight financing adjustment may apply to a leveraged CFD position held after the broker’s rollover cut-off. Currency conversion may arise if the trading account is not denominated in USD.
- Confirm the broker’s definition of a lot in troy ounces.
- Read whether the spread is fixed or variable.
- Calculate cost in cash, not only in “points”.
- Compare round-trip commissions and overnight financing.
Use a transparent example
Our XAU/USD calculator accepts entry, exit, ounces and an explicit spread-cost estimate. It does not fetch live broker quotes, which avoids pretending an illustrative price is a current executable offer. Each comparison should link to the provider’s dated contract specification.
XAU/USD gold profit & loss calculator
Change assumptions yourself. This free calculator uses transparent arithmetic; it does not predict a strategy’s future results.
Open interactive calculator ↗