Guys,
I have been trading XAU for a while I also have a futures account with another broker. Looking at the gold futures /GC, it seems that the spread is usually $0.10 or $0.20, which is much smaller than XAU spread (my broker offers spread around 50 pips for XAU). If you trade 200 - 500 oz. gold, the cost of spread does add up.
However, comparing the market depth, spot gold seems much more liquid than /GC. For /GC, on the ask & bid side, usually it's only 1 - 3 contracts on each side.
My question is which one do you prefer trading? Which one is more liquid and cheaper (considering slippage, spread & commissions)?
I have been trading XAU for a while I also have a futures account with another broker. Looking at the gold futures /GC, it seems that the spread is usually $0.10 or $0.20, which is much smaller than XAU spread (my broker offers spread around 50 pips for XAU). If you trade 200 - 500 oz. gold, the cost of spread does add up.
However, comparing the market depth, spot gold seems much more liquid than /GC. For /GC, on the ask & bid side, usually it's only 1 - 3 contracts on each side.
My question is which one do you prefer trading? Which one is more liquid and cheaper (considering slippage, spread & commissions)?