The formula
Commission = total trade value ÷ US$1,000,000 × US$25
Worked gold example
Suppose you trade 2 lots of gold at a price of US$4,413.14. One lot represents 100 ounces, so 2 lots represents 200 ounces.
| Step | Calculation | Result |
|---|---|---|
| 1. Position size | 2 lots × 100 ounces | 200 ounces |
| 2. Total trade value | 200 × US$4,413.14 | US$882,628 |
| 3. Commission | US$882,628 ÷ US$1,000,000 × US$25 | US$22.07 |
What if the trade value is only US$10,000?
US$10,000 ÷ US$1,000,000 × US$25 = US$0.25.
Your account balance or the margin used might be around US$10,000, but leverage can allow you to control a larger position. Commission is calculated on the full value of the position, not the account balance or margin used.