Lesson 4

Gate TradFi Feature Expansion and CFD Trading

In the previous lessons, we systematically broke down the infrastructure, trading mechanisms, and risk characteristics of the crypto financial system, and explored how decentralized finance is reshaping asset liquidity and value transfer. As the industry matures, single crypto asset trading can no longer fully meet users' needs for risk diversification, cross-market allocation, and price discovery. This lesson takes a broader perspective, focusing on how crypto trading platforms are extending into traditional financial asset price trading. Through Gate's ongoing expansion of TradFi features, we see a platform taking shape with comprehensive trading infrastructure characteristics, providing real-world examples of how crypto and traditional finance are converging.

Background and Positioning of TradFi Feature Integration

As one of the world’s leading crypto asset trading platforms, Gate has continuously expanded its TradFi features in recent years, offering users CFD (Contract for Difference) trading services covering traditional financial assets such as gold, forex, indices, commodities, and select popular stocks. This feature is directly integrated into the Gate App, allowing users to participate in traditional financial asset price trading without leaving their existing trading environment.

This product layout is not a simple category addition, but a structural extension of the platform’s trading system:

  • Expanding from single crypto asset trading to multi-asset price discovery
  • Linking internal crypto market volatility to the rhythms of global traditional financial markets
  • Transitioning from single trading logic to a parallel multi-rule trading system

With the introduction of TradFi contracts, Gate is building a multi-dimensional trading environment covering both crypto and traditional financial assets, giving users a more comprehensive range of trading choices.

USDx Valuation System: Internal Accounting Logic for TradFi Accounts

On the account and valuation side, Gate TradFi contracts use USDx as the unit for margin and account display. It’s important to note that USDx is not a fiat currency or an independent crypto asset, but an internal unit used by the platform for TradFi asset accounting and balance display.

The core mechanisms include:

  • USDx is pegged 1:1 to USDT
  • When users transfer USDT to their TradFi account, the balance is automatically displayed in USDx
  • All related assets are 100% backed by USDT
  • No manual exchange or additional fees or custody charges are required

This design creates a clear distinction between TradFi trading accounts and crypto asset accounts without introducing additional asset risks, reducing both user understanding and operational costs.

Trading Mechanism Differences: Distinct Logic Between TradFi Contracts and Crypto Perpetual Contracts

On the trading rules side, Gate TradFi contracts differ significantly from the crypto perpetual contracts users may be familiar with; their overall logic aligns more closely with traditional financial CFD systems.

TradFi contracts follow fixed trading sessions and scheduled market closures rather than 24/7 continuous trading. This aligns trading rhythms with traditional markets and introduces overnight risk management mechanisms.

In terms of contract structure and margin system:

  • Leverage multiples are fixed values and cannot be manually adjusted by users
  • Margin is managed on a cross-margin basis
  • Long and short positions in the same trading pair can be hedged by lot size
  • P&L is settled at counterparty prices
  • Overnight fees apply during market closures

The overall rule design is highly consistent with mainstream CFD markets, helping users operate within familiar traditional financial trading logic.

Leverage and Fee Structure: High Flexibility Within Controllable Costs

For leverage configuration, Gate TradFi contracts offer differentiated settings based on asset type:

  • Major assets like forex and indices support up to 500x leverage
  • Stock CFDs support up to 5x leverage

This leverage structure meets varying user risk preferences while matching traditional market risk levels.

Fee structure is also notable. Gate TradFi offers a clear advantage in transaction fees, with single trade fees as low as $0.018, providing users with a transparent, predictable, and controllable cost structure. This low-friction design improves strategy execution efficiency, making it especially suitable for high-frequency or short-term trading scenarios.

System Architecture and Risk Control: Moving Toward a Mature Financial Trading System

On the system side, Gate TradFi delivers trading services via the MT5 (MetaTrader 5) system. Account data and trading records are synchronized between the Gate App and MT5 client, meeting professional traders’ needs for advanced tools while maintaining a consistent internal platform experience.

For risk control, the platform employs a margin ratio-based forced liquidation system:

  • When account margin ratio drops to 50% or below
  • The system triggers forced liquidation procedures
  • Positions are closed step-by-step according to established rules

This mechanism aims to control overall risk exposure, prevent disorderly risk spread during extreme market conditions, and reflects how TradFi products inherit traditional financial risk control logic.

Platform Evolution in a Multi-Asset Trading System

With ongoing expansion of TradFi features, Gate’s trading system is no longer confined to crypto asset volatility but now extends into traditional financial asset price trading. Users can make multi-asset price assessments, hedge risks, and make trading decisions all within one platform, greatly reducing the complexity of cross-platform operations.

From a broader perspective, this product model shows that crypto trading platforms are gradually aligning with mature financial markets in terms of product structure, trading rules, and risk management. As the boundaries between crypto and traditional financial markets continue to blur, multi-asset and cross-market trading demand is expected to grow further.

Gate TradFi’s ongoing upgrades mark an important step in building comprehensive trading infrastructure on the platform and offer valuable practical insights into how the industry can integrate different asset classes within a compliant framework.

Disclaimer
* Crypto investment involves significant risks. Please proceed with caution. The course is not intended as investment advice.
* The course is created by the author who has joined Gate Learn. Any opinion shared by the author does not represent Gate Learn.