Precious metals spread can be viewed from two perspectives: the bid-ask price difference displayed on the quote interface, and the USD cost converted from this price difference for a single order. Calculated based on London Gold at 100 troy ounces per lot, when the bid-ask difference is USD 0.15, one lot corresponds to USD 15, 0.1 lot corresponds to USD 1.5, and 0.01 lot corresponds to USD 0.15.
Therefore, "a quote difference of USD 0.15" and "USD 15 per lot" refer to the same price difference expressed in two different ways.
Lucky Gold’s current trading specifications list London Gold as a floating spread, quoted at USD 15 per lot; London Silver is quoted at USD 60 per lot. Spreads fluctuate with market conditions, and the actual spread shall be subject to the bid and ask quotes at the time of order placement.()
Where Does the Spread Come From
Open the quote page, and you will see the buy price and sell price. The two prices are usually not identical. The gap between them is what is commonly referred to as the trading spread.
Assume London Gold quotes at a certain moment: Buy price USD 4300.15 Sell price USD 4300.00
The difference between the two prices: 4300.15－4300.00＝USD 0.15
This USD 0.15 is the price spread at the quote level.
How to Convert It into the Cost per Lot
One lot of Lucky Gold London Gold represents 100 troy ounces. The calculation formula is: Spread Cost = Bid-Ask Price Difference × Contract Size × Trading Lots
If the price spread is USD 0.15: 1 lot: 0.15×100×1＝USD 15 0.1 lot: 0.15×100×0.1＝USD 1.5 0.01 lot: 0.15×100×0.01＝USD 0.15
This calculation links the "USD amount per lot" to the price difference shown on the quote interface.
Why USD 0.2 May Be Seen Sometimes
Spread is a floating trading parameter. Market liquidity, trading sessions, releases of key economic data and sudden sharp market moves may all cause changes in the bid-ask spread.
For example, if the spread becomes USD 0.20 at a certain time, calculated on the basis of 100 troy ounces per lot: 0.20×100＝USD 20 per lot
Therefore, the USD 0.2 example in historical FAQs and the current USD 15 per lot stated in trading specifications should not be simply regarded as two permanently fixed fee standards. For live trading, always check the real-time bid and ask prices on your trading terminal.
Why Silver Spread Figures Look Different
One lot of London Silver currently represents 5000 troy ounces. If the bid-ask spread is USD 0.012: 0.012×5000＝USD 60 per lot
The contract size per lot for silver is far larger than that for gold. Hence, a small price difference on the quote will translate into a cost of dozens of US dollars for one full lot. This is why you cannot compare gold and silver spreads merely by looking at the USD price gap on the quote screen. Contract size must be included in the calculation.
When Is the Spread Incurred
When a trade is opened, buying and selling correspond to different quotes. As a result, the order will initially reflect the cost generated by the bid-ask spread. The market then needs to move a certain distance in your favour to cover this spread cost. The cumulative impact of spread will be more obvious for traders with high trading frequency. For positions held over a longer period, overnight charges also need to be considered.
Therefore, when calculating trading costs, it is best to separate spread and holding charges.
How to Evaluate "Low Spread"
When you see a spread figure, ask three questions first. Does it apply to gold or silver? What lot size is it calculated on? Is it a fixed value or a floating value?
Only after clarifying these points will the figure make real sense. Seeing "0.15" or "USD 15" alone is incomplete.
Risk Warning: Precious metals spreads are subject to changes in market conditions and may widen during major market events. Actual costs shall be subject to the quotes on the trading terminal and the latest trading rules at the time of transaction.