The three ways a trade costs you
Before price moves at all, a trade has already cost something. Three costs, charged in three different ways.
1. Spread
The gap between the bid (sell) and ask (buy). You buy at the higher price, sell at the lower — so every position starts slightly negative.
On XAUUSD you might see: Bid 4,600.15 / Ask 4,600.40. The spread is 25 cents, or 25 points.
Converting to money uses the contract size from any gold lesson:
$$\text{Spread cost} = \text{spread in \$} \times \text{lots} \times 100$$
25 cents on 0.10 lots: 0.25 × 0.10 × 100 = $2.50, paid instantly.
Spread is not fixed. It widens overnight, at the daily rollover, in thin sessions, and around news. A broker advertising "spreads from 10 points" is quoting the best case in the deepest hour.
2. Commission
A flat charge per lot traded, common on raw-spread and ECN accounts. Typically $3–7 per lot per side — so $6–14 round turn.
Two account types usually exist: