How does the spread affect my trading costs?

The spread is the gap between the price you can buy at (Ask) and the price you can sell at (Bid). It is a trading cost built into these prices, so you will not see a separate spread fee deducted from your account.

How is the spread reflected in my trade?

The spread affects your trading cost when you open and close a position:

Buy positions: Open at the Ask price and close at the Bid price.
Sell positions: Open at the Bid price and close at the Ask price.

This price difference is why a newly opened position usually shows an initial floating loss.

How is the spread calculated?

Spread = Ask price − Bid price

Example: XAU/USD

Suppose XAU/USD has the following prices:

Bid price: 4110.00
Ask price: 4110.20
Spread: 4110.20 − 4110.00 = 0.20, or 2.0 pips.

If you buy at 4110.20 and immediately close at 4110.00, the price difference results in a loss of 2.0 pips, excluding other charges.

For the buy position to show a trading profit, the Bid price must rise above your opening Ask price.

How do I calculate the spread cost?

For products quoted in pips:

Spread cost = Spread in pips × Pip value per standard lot × Number of lots

Example: Trading 1 standard lot of XAU/USD

Assuming the pip value is USD 10 per standard lot:

Spread: 2.0 pips.
Trade size: 1 standard lot.
Spread cost: 2.0 × USD 10 × 1 = USD 20.

The USD 20 is reflected in the difference between the buy and sell prices. It is not a separate spread fee deducted from your balance.

Pip values depend on the product, trade size, and currency conversion where applicable.

Does the spread include commission?

The spread and commission are different trading costs.

Accounts without commission: The trading cost is built into the spread.
Accounts with commission: A separate commission applies in addition to the spread.
Cost comparison: Compare the combined spread and commission rather than the spread alone.

Other charges, such as overnight holding fees, may also apply.

Where can I check the current spread?

PU Prime website: Visit the Spreads, Costs & Swaps page for product spread information.
MetaTrader 4 and MetaTrader 5: Check the current Bid and Ask prices for the product you intend to trade.

Website spread information may differ from the spread available when you trade. The applicable spread is the difference between the Bid and Ask prices at the time of execution.