Gold spread and trading costs: what each trade really costs
A spread of a few cents looks harmless. But it is paid on every trade, and when you measure it against your stop distance it can be a surprisingly large part of what you risk.
Last updated 2026-10-05 · Educational content, not investment advice
What the spread is
The spread is the gap between the price you can buy at and the price you can sell at. You pay it immediately when you open a position, because you enter at the worse side and the position starts slightly in the red.
Some accounts charge a commission on top, and positions held overnight can pay or receive swap. Check the real figures on the account you use.
From spread to dollars
Cost per trade = lots × contract size × spread + lots × commission
Example with a 0.3 USD spread, 0.1 lot and a 100 oz contract: 0.1 × 100 × 0.3 = 3 USD per trade. Over 40 trades a month that is 120 USD, or 12% of a 1,000 USD account, before you have made or lost a cent on price.
Hypothetical numbers to explain the formula. Real spreads vary by broker, time of day and news.
Spread as a share of your risk
A more useful way to see cost is relative to the risk you take. If your stop is 5 USD away and the spread is 0.3 USD, each trade starts with 0.3 ÷ 5 = 6% of your risk already spent. Over 40 trades that is 2.4 times your per-trade risk paid in costs, which your winning trades must first earn back.
A tighter stop makes the same spread a larger share of your risk. This is one reason very short-term trading is hard to make pay.
Spreads widen when it matters
Spreads usually widen around major news releases and when liquidity is thin, such as at the daily rollover. A strategy that looks fine at the average spread can look different at the spread you really get when you trade.
What to do with this
- Estimate your monthly cost with the spread cost calculator.
- Include the spread in every profit and loss estimate with the profit and loss calculator.
- Check the break-even win rate with the risk-reward calculator, remembering that costs raise it.
- Compare the spread you actually receive in your trade history, not just the advertised minimum.
Related tools
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Net result after spread and commission
Open tool →Risk-reward calculator and break-even win rate
R:R, required win rate and expectancy per trade
Open tool →Limits and risk
This tool is educational. Results are estimates from the numbers you enter and are not investment advice. Trading CFDs is high risk and you can lose everything. Read the full risk warning