What Does the Minimum Difference in Gold Trading Mean?
2023-06-05
Summary:
Learn how the minimum spread in gold trading impacts your trading costs and profits, and compare spreads for better trading.
The minimum spread in gold trading refers to the difference in price between the smallest unit of movement when buying and selling gold in the gold trading market. This price difference is usually expressed in terms of pips or percentages, also known as "spread".
When merchants and banks make quotations, their bid price will be lower and their selling price will be higher. The middle price difference is their profit, usually the buying and selling price difference for London gold is 0.5 US dollars per ounce.
For example, if the current market quote is $1250 per ounce, the buying price is $1250.50, and the selling price is $1249.50, then the minimum spread is 1 cent, or 1 point. That is to say, if you purchase gold, you need to pay $1250.50, while if you sell gold, you can only get $1249.50.
For brokers, when they collect trade commissions, they do not charge a fixed amount but based on the number of transactions, such as 1 yuan per gram. Different companies and brokers have different international gold spreads.
The minimum spread of gold speculation is an important concept as it affects the cost and profit of your gold trading. Usually, the smaller the spread, the lower the transaction cost, and the higher the profit for investors. So when choosing a gold trading platform, it is necessary to pay attention to comparing the minimum spread between different platforms in order to choose the most favorable trading conditions.
【 EBC Platform Risk Reminder and Disclaimer 】: There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice.
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