When opening London Gold quotes, users usually see two prices at the same time: a bid price and an ask price. New users who use trading software for the first time often wonder why there are two different prices for the same gold asset at the same moment. The reason lies in the spread between the bid price and ask price.
I. Why Are There Two Quotes for Gold
Market trading requires both bid and ask quotes. When users choose to buy, they open orders at the corresponding ask price; when they choose to sell, they trade at the corresponding bid price. The gap between the two quotes is what is commonly known as the spread. The MT5 trading window also displays current bid and ask quotes simultaneously, allowing users to check the difference before submitting orders.
II. How Exactly Is the Spread Calculated
Assume the difference between the two London Gold quotes at a certain time is 0.15 US dollars. One standard lot equals 100 troy ounces, so the spread for one lot is calculated as: 0.15 USD × 100 troy ounces = 15 USD
Therefore, to evaluate the spread, you cannot only look at the price difference in US dollars. You also need to take the actual contract unit and trading lot size into account.
III. What Is the Bid-Ask Spread of London Gold on Lucky Gold
For London Gold on Lucky Gold, one standard lot corresponds to 100 troy ounces. The current base spread is 15 US dollars per lot with zero trading commission, and the minimum supported lot size is 0.01 lots.
Calculated based on 15 US dollars per lot: 1 lot corresponds to 15 US dollars 0.1 lot corresponds to approximately 1.5 US dollars 0.01 lot corresponds to approximately 0.15 US dollars
This proportional conversion method is more intuitive for users who prefer small lot sizes.
IV. Why Do Figures Not Start from Zero Immediately After Opening an Order
Since separate quotes are used for buying and selling, your account will first reflect the initial impact from the bid-ask spread right after opening an order. Therefore, seeing a certain discrepancy immediately after placing an order does not necessarily mean the market has moved significantly. Once you understand the relationship between bid and ask prices, it will be easier to interpret real-time figures in trading software.
V. How Membership Rebates Affect Actual Trading Costs
Lucky Gold operates a membership benefits system. Traders can receive an extra spread rebate of up to 7 US dollars per lot, and monthly trading bonuses of up to 20 US dollars per lot. The exact amount received depends on membership tier and promotional terms.
When comparing bid-ask spreads across gold platforms, you should separate the base spread from membership rebates. The base spread is used to calculate the initial trading cost for each order, while membership rebates are additional benefits granted upon meeting relevant requirements.
VI. Is a Lower Bid-Ask Spread Always Better?
The spread is a straightforward component of trading costs, but you should not select a platform based solely on this single figure. You also need to consider order execution efficiency, live quotes, trading software and long-term user experience.
In addition to the base spread of 15 US dollars per lot for London Gold, Lucky Gold adopts straight-through order processing and provides free trading signals and featured indicators. This allows users to make comprehensive comparisons covering costs and software experience.