Gate Expands TradFi with 500x Leverage CFDs via MT5 System

Gate Expands TradFi with 500x Leverage CFDs via MT5 System
This article was prepared using automated systems that process publicly available information. It may contain inaccuracies or omissions and is provided for informational purposes only. Nothing herein constitutes financial, investment, legal, or tax advice.

Introduction

Gate, a leading cryptocurrency exchange founded in 2013, is making a decisive push into traditional finance with a significant expansion of its TradFi feature. The platform now offers Contracts for Difference (CFDs) on assets including gold, foreign exchange, stock indices, commodities, and popular equities, integrating them directly into its existing ecosystem. This strategic move, powered by the MetaTrader 5 (MT5) trading system and supporting leverage of up to 500x, represents a key step in blurring the lines between crypto and traditional financial markets, offering users a unified platform for multi-asset trading and risk management.

Key Points

  • Uses USDx internal accounting unit pegged 1:1 to USDT for margin and display, eliminating manual conversion and extra fees
  • Powered by MetaTrader 5 (MT5) trading system with synchronized data between Gate App and MT5 client
  • Implements margin-ratio-based liquidation triggering at 50% margin ratio with gradual position closure

Bridging Crypto and Traditional Finance with USDx

At the core of Gate’s TradFi expansion is the introduction of USDx, an internal accounting unit designed specifically for these traditional finance products. USDx is neither fiat currency nor a cryptocurrency, but a stable unit pegged 1:1 to USDT. When users transfer USDT into their dedicated TradFi account, their balance is automatically displayed in USDx. This mechanism ensures the underlying value remains fully backed by USDT while eliminating the need for manual conversions. According to the platform, this design choice means users incur no additional exchange or custody fees, creating a seamless bridge between their crypto holdings and traditional asset trading.

The use of USDx as the margin and account display unit simplifies the user experience, allowing traders to utilize their existing USDT reserves to gain exposure to traditional markets without leaving the Gate ecosystem. This integration is a practical response to growing demand for cross-asset strategies, where traders might seek to hedge crypto volatility with positions in gold or major forex pairs. By anchoring the system to USDT, Gate leverages the stability and liquidity of a major stablecoin while adopting a familiar accounting convention from traditional brokerage services.

Trading Mechanics: Adopting Mainstream Market Conventions

Gate’s TradFi contracts deliberately diverge from the platform’s crypto perpetual futures to align with established traditional financial market rules. These CFDs operate with fixed trading sessions and market closures, mirroring the schedules of global equity and commodity exchanges. Leverage is set at fixed, product-specific levels and cannot be manually adjusted by users, contrasting with the more flexible leverage models often seen in crypto derivatives. For major products like foreign exchange and indices, leverage reaches up to 500x, while equity CFDs are capped at 5x.

The trading structure employs a cross-margin model and allows for position hedging, meaning long and short positions on the same trading pair can offset each other based on size. Profit and loss are calculated using counterparty prices, and overnight financing fees apply during market closures—a standard practice in mainstream CFD markets. This adherence to conventional rules extends to fees, with a transparent cost model featuring per-trade commissions starting at $0.018. This defined structure offers clarity for users accustomed to traditional brokerage fee schedules, further emphasizing Gate’s integration of mature financial market practices.

MT5 Infrastructure and Risk Management Framework

Powering this new offering is the MetaTrader 5 (MT5) trading system, a platform widely used in traditional forex and CFD brokerage. Gate’s implementation ensures account data and transaction records are synchronized between the native Gate App and the MT5 client, providing users with the robust charting, analysis, and automated trading tools for which MT5 is renowned. This technical foundation signals Gate’s commitment to providing a professional-grade trading environment that meets the expectations of seasoned traditional market participants.

Risk management is governed by a strict, margin-ratio-based liquidation mechanism. When an account’s margin ratio falls to 50% or below, the system initiates a forced liquidation process. This process gradually closes relevant positions according to predefined rules to manage overall risk exposure for both the user and the platform. This structured approach to liquidation, coupled with the fixed leverage and session-based trading, represents a significant adoption of the risk management frameworks prevalent in traditional finance, moving beyond the often more dynamic models used in crypto-native derivatives.

Strategic Expansion and User Incentives

This expansion is more than a product launch; it is a strategic evolution of Gate’s ecosystem. By broadening into traditional financial asset price trading, Gate provides its over 48 million users with more options for multi-asset price discovery, risk hedging, and unified trading decisions. The platform highlights that this structure simplifies cross-platform operations, allowing users to manage diverse asset exposures within a single account interface.

To encourage adoption, Gate has launched a promotional campaign. Eligible users who register can receive up to 110 USDT in trial rewards. Upon completing qualifying trades, they can unlock additional phased incentives worth up to 3,000 USDT, designed to support their initial foray into TradFi trading. This initiative, spearheaded by founder Dr. Han, underscores the platform’s commitment to its multi-asset vision. As the boundaries between crypto and traditional markets continue to blur, Gate’s TradFi feature offers a practical reference for integrating different asset classes within a compliant, unified framework, marking a key step in the platform’s exploration of integrated trading infrastructure.

Other Tags: Gate, Tether (USDT), TradFi
Notifications 0