Which price applies when closing a London Gold position depends on your original trade direction. At Lucky Gold, long positions are closed at the ask price; short positions are closed at the bid price. Keep this rule in mind, and most profit and loss calculations will become straightforward.
Why Long Positions Use the Ask Price for Closing
When going long, you open the position at the bid price. To exit the trade later, you are effectively selling your holding, so the system closes the position at the prevailing ask price.
Suppose the London Gold bid price is $4300.15 and the ask price is $4300.00. You buy 0.1 lot at $4300.15. If the ask price later rises to $4310.00, the price movement is calculated as $4310.00 minus $4300.15, not the updated bid price.
Why Short Positions Use the Bid Price for Closing
Going short works in the opposite way. You open the position at the ask price, and to close out, you buy back the contract at the bid price.
Assume you sell 0.1 lot at $4300.00. The market then falls, and the bid price drops to $4290.15. The price movement is calculated as $4300.00 minus $4290.15.
Why Two Prices Are Displayed at the Same Time
London Gold quotes normally show both bid and ask prices, and the gap between them is the spread. Floating profit or loss is immediately affected by this spread once an order is opened, so new positions rarely start at zero P&L.
This also explains why an order may not break even even when the candlestick price returns to your entry level. You must refer to the quote side matching your closing direction.
Do Not Forget the Lot Size When Calculating P&L Manually
The contract size for London Gold at Lucky Gold is 100 troy ounces per lot. The simplified formula is as follows: Profit or loss for a long trade = (Closing ask price − Opening bid price) × 100 troy ounces × trade lots Profit or loss for a short trade = (Opening ask price − Closing bid price) × 100 troy ounces × trade lots
Your actual account result will also be affected by spreads, overnight swaps and other charges. The final settlement is subject to your transaction records.
If you regularly review your trade history, it is recommended to list the trade direction, entry price, closing price and lot size in one line. Mixing up the direction will almost always lead to wrong calculations.
Analyse a Complete Order With Bid and Ask Prices
Many traders understand the formula but look at the wrong quote side. For example, you go long 0.2 lots with an opening bid price of $4300.15. The market rallies, and the terminal shows a bid price of $4310.15 and an ask price of $4310.00. Your position is closed at the ask price of $4310.00, giving a price difference of $9.85. With 100 ounces per lot, 0.2 lots equal 20 ounces. Excluding overnight fees and other costs, this price change corresponds to approximately $197 in P&L. For short trades, reverse the calculation: subtract the closing bid price from the opening ask price.
This type of calculation works well for post-trade reviews. Note down the direction, lot size, entry and exit price from your order history, confirm whether it is a long or short position, and you can usually work out the result within seconds. Relying only on a candlestick price often causes you to overlook the bid-ask spread.
Why You Should Not Only Watch Candlesticks When Closing Positions
Candlestick charts are generated based on one selected quote or data source, while the trading terminal displays both bid and ask prices. In fast-moving markets, both prices shift and spreads can widen. If you assume your trade has broken even just because the candlestick touches your entry level, your actual closing result may differ.
We suggest separating chart analysis and P&L checking: use candlesticks to judge market trends, and check your account entry price, current closing quote and lot size to verify profit and loss. This extra step helps avoid misjudgements. Especially during high-volatility events such as Non-Farm Payrolls and interest rate decisions, real-time spreads may differ from normal levels. Official trade records are more reliable than visual estimates.
Two Common Confusions for New Traders
The first mistake is using the current bid price directly to calculate the closing gain of a long position. The second is treating the bid-ask spread as an extra separate fee charged by the platform. The spread is built into the two-sided quotes and is automatically reflected in P&L when you open and close orders. With this understanding, the small initial floating loss shown after opening a position becomes easy to interpret.
Build a simple routine before closing: for long trades, check the ask price first; for short trades, check the bid price first, then confirm the lot size. With these three details confirmed, you can work out most basic profit and loss figures correctly.
Risk Warning: London Gold is traded on margin. Price movements will amplify profits and losses in your account. Please confirm your order direction, lot size and acceptable risk before trading.