Profit or loss on a gold, oil or other commodity position in your account currency, with the contract size doing the work it always does and nobody checks.
The maths here is trivial and the contract size is not. Gold is priced per ounce and usually contracted in hundreds of them; oil is priced per barrel and contracted in thousands.
Carrying a forex lot size across to a commodity is the most expensive assumption available on a trading platform, and it is made constantly.
A model, not a quote. Every figure here comes from what a broker publishes or what you type, and real fills, spreads and rates move.
Gold at $2,500, one lot of 100 ounces. Trading 0.10 lots is 10 ounces, so a $20 move is $200.
That sounds modest until you look at the notional: 10 ounces at $2,500 is $25,000 of exposure from a position that reads as 0.10 on the ticket.
The same 0.10 on a forex pair would be a mini lot: 10,000 units, roughly $1 a pip. The ticket looks identical and the exposure is twenty-five times larger.
The sizes offered above are common conventions rather than a standard. Brokers define their own, and some differ substantially, particularly on oil and silver.
Read the contract specification for the specific instrument at your specific broker before sizing anything from this.
It is the most common convention and it is not universal. Check the specification. This is the field that produces the largest errors.
Not through a CFD or a futures position you close before delivery. You have exposure to the price.
Because it is what the position should have been sized from, and because it is routinely much larger than the lot number suggests.
No. Commodity positions held overnight accrue financing or roll adjustments depending on the product, and those are separate from the trade result.