A metals quote can look simple: a code, two prices and a trade volume. The account effect is only clear after the quote is connected to the platform’s contract size, tick rules, currency conversion and costs.
This guide uses illustrative arithmetic. It does not state the current RG product specification or a live market price.
Identify the metal and quote currency
XAU commonly identifies gold, XAG silver, XPT platinum and XPD palladium. When paired with USD, the quotation expresses a US-dollar price for the stated metal unit. A price of 2,400 for a hypothetical XAU/USD reference therefore describes 2,400 US dollars for the referenced unit, not the required cash deposit for every platform trade.
Suffixes and prefixes can identify an account route or product variant. Confirm the complete symbol rather than assuming two similarly named products share the same specification. The metals CFD foundations guide explains the ownership boundary and market differences.
Understand the troy ounce
Precious-metals markets commonly use the troy ounce. The LBMA records one troy ounce as exactly 31.1034768 grams. It is heavier than the everyday avoirdupois ounce used for many household goods.
This unit helps explain the market quotation, but it does not automatically define a retail CFD contract. An exchange future, a spot-market convention and a provider’s CFD can use different contract sizes and minimum quantities.
Read bid, ask and spread
The bid is normally the price available to sell, while the ask is normally the price available to buy. The ask is above the bid in an ordinary two-sided quote, and the difference is the spread.
A long CFD usually opens at the ask and is valued for closure at the bid. A short usually opens at the bid and is valued for closure at the ask. If a hypothetical quote is 2,400.00 bid and 2,400.30 ask, the displayed spread is 0.30 price units. Commission, financing, conversion and execution may add to the total cost.
Connect contract size and lot volume
Contract size states how much underlying reference one whole lot represents. Trade volume states the fraction or multiple of that lot selected on the ticket. If an illustrative product represents 100 troy ounces per lot, 0.10 lot represents reference exposure to 10 ounces. This is an example, not a product promise.
Gross price-movement value can be expressed as contract size × lot volume × price change. A 2.00-dollar move in that hypothetical 10-ounce exposure gives a 20-dollar gross movement before spread, commission, financing, conversion and execution. Direction determines whether the move is favourable or adverse.
Tick size, tick value and digits
Digits describe display precision. Tick size is the minimum quoted increment recognised by the product, while tick value translates one tick across the selected exposure into money. These are related but not identical concepts.
MetaTrader’s symbol specification can show contract size, digits, tick size, tick value, volume minimum, volume step, margin settings, swap information and trading sessions. Where the profit currency differs from the account currency, the platform may use current conversion quotes. Recheck account-currency tick value after material exchange-rate movement.
Work through a complete example
Assume an illustrative metal CFD has a 50-ounce contract, a 0.01 volume step and a quote currency of USD. A 0.20-lot position represents 10 ounces of reference exposure. If price moves by 1.50 dollars, the gross movement is 15 dollars. The spread is already reflected by using the correct opening and closing sides of the quote; any separate commission and financing must still be added.
If the trading account is in NZD, the USD result must then be converted at the applicable rate. The conversion can change between planning and closure, so a saved figure is not permanent.
A platform checklist before order entry
- Confirm full symbol and quote currency.
- Record contract size, tick size, tick value, digits and calculation currency.
- Check minimum, maximum and step volume.
- Review bid, ask, spread and any separate commission.
- Confirm margin, financing, sessions and daily maintenance.
- Calculate the adverse scenario in account currency and round volume down where the permitted step requires it.
Use the current product schedule and live platform specification together. Neither a generic metal convention nor an old screenshot is a substitute for the active instrument data.