Understanding spreads

Spread is the difference between buying and selling a commodity. How low spread you can receive depends on the initial size of your trading account. Commodity quotes are always provided with bid and ask prices, similar to what you see in the equity markets.

The bid represents the price at which the commodity broker is willing to buy the commodity for (Gold in our example) in exchange for the currency (USD). Conversely, the ask price is the price at which the commodity broker is willing to sell gold for in exchange for USD.