Gold Contract Specifications: 7 Lines That Set Your Costs
Gold contract specifications, line by line: contract size, digits, spread, swap, margin and hours, with each one turned into dollars per trade.
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Read more →Lesson 01 of 6 · Strategy and System Building
20 min4 topics
Topic 1 of 4
Most traders pick a style by accident — whichever one the first video they watched was about — and then wonder why it does not fit. The choice deserves more than that, because holding period determines your costs, your screen time and how often you have to make a decision, and those three things decide whether a strategy is executable by you rather than merely correct.
One parameter, and almost everything else follows from it.
| Scalping | Day trading | Swing trading | Position trading | |
|---|---|---|---|---|
| Hold for | Seconds to minutes | Minutes to hours | Days to weeks | Weeks to months |
| Trades per week | 50 to 200+ | 5 to 25 | 1 to 5 | Under 1 |
| Chart | M1 to M5 | M5 to H1 | H4 to daily | Daily to weekly |
| Screen time | Continuous | A fixed session | Minutes a day | Minutes a week |
| Overnight risk | None | None | Yes | Yes |
| Swap matters | No | No | Yes | Substantially |
| Decisions per week | Hundreds | Dozens | A handful | Very few |
The last row is the one to weigh. Each decision is an opportunity to deviate, and a scalper makes two hundred of them a week. Whatever discipline you have is being spent at that rate — which is why a method that works on paper can fail purely on execution when the trade count is high.
Note
Overnight risk is a real difference, not a preference. Day traders sleep flat; swing traders hold through releases, weekend gaps and swap charges. Neither is safer overall — they are different risks, and Track 4's calendar lesson is written for the second group.
This is the arithmetic that quietly rules out the style most beginners choose first.
Costs are charged per trade and are roughly constant. Expected profit scales with how far you expect price to travel. So the shorter the holding period, the larger a share of the target the cost eats.
| Style | Typical target | Cost round turn | Cost as a share |
|---|---|---|---|
| Scalping | 5 pips | 1.2 pips | 24% |
| Day trading | 30 pips | 1.2 pips | 4% |
| Swing trading | 150 pips | 1.2 pips | 0.8% |
| Position trading | 500 pips | 1.2 pips + swap | 0.2% plus carry |
Twenty-four percent of every winner going to the broker is not a detail that better entries can fix. Track 5's break-even arithmetic makes the point precisely: a 1:1 scalp with 24% costs needs a win rate well above 60% simply to break even, before any profit.
Caution
Scalping is marketed as the beginner's entry point because it produces action and quick feedback. It is the hardest style to make money at: highest costs as a share of target, the most decisions, the least tolerance for slippage, and the greatest execution-quality dependence.
Be honest about the hours available, because the market's best hours are fixed and your life's are not.
The common resolution for someone with a full-time job in the wrong time zone is swing trading on the daily chart: check once in the evening, place orders, leave. It is not a compromise. It has the lowest costs as a share of target and the fewest decisions of any style here, and it is available to someone who can give the market twenty minutes a day.
Good to know
Temperament matters as much as the timetable. Holding a position for three weeks through a drawdown is a different psychological task from closing everything by 5pm — and someone who cannot sleep on an open position should not be swing trading, however well it fits their diary.
Write the choice down in four lines, so that it is a commitment rather than a mood:
Then stay with it long enough to learn something. A hundred trades in one style produces data you can act on; twenty trades in each of five styles produces nothing, because the sample in each is too small to distinguish from noise — which is Track 5's expectancy lesson applied to your own career rather than to a strategy.
What is not legitimate is switching after a losing week. Every style has losing weeks, and a trader who changes style after each one has a sample size of one in everything, forever. That is the single most common way a trader spends three years and learns nothing.
Gold contract specifications, line by line: contract size, digits, spread, swap, margin and hours, with each one turned into dollars per trade.
9 min read
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