> For the complete documentation index, see [llms.txt](https://yubit.gitbook.io/yubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yubit.gitbook.io/yubit/tradfi/what-is-yubit-tradfi-cfd.md). # What Is YUBIT TradFi CFD? YUBIT TradFi CFD provides users with convenient access to global traditional financial markets. Through TradFi CFD, users can participate in price movements of gold, forex, stocks, indices, crude oil, and other popular global assets without actually holding the underlying assets. With one YUBIT account, users can connect Crypto and global TradFi CFD markets and explore more diversified trading opportunities. #### 1. What Is TradFi CFD? CFD, or Contract for Difference, is a type of financial derivative. Unlike directly purchasing assets such as stocks or gold, CFD trading does not give you ownership of the underlying asset. Instead, you trade based on whether the asset price rises or falls, and profit or loss is calculated according to the price difference between opening and closing the position. For example: * If you believe the price of gold may rise, you can buy or go long on XAUUSD. * If you believe the price of gold may fall, you can sell or go short on XAUUSD. This means users may choose a trading direction based on their own market view, whether the market is rising or falling. TradFi CFD is derivative trading. Users do not own the underlying assets and no physical delivery of the underlying assets is involved. #### 2. Which Markets Does YUBIT TradFi CFD Support? YUBIT TradFi CFD covers multiple major traditional financial markets, allowing users to explore different asset classes through one account. **Precious Metals** Including popular global precious metals such as gold and silver. Examples: * XAUUSD (Gold) * XAGUSD (Silver) **Forex** Covering major global currency markets. Examples: * EURUSD * GBPUSD * USDJPY * AUDUSD **Stocks** Covering CFD products related to popular listed companies across global markets. Users do not need to actually hold the underlying shares and can trade long or short based on share price movements. **Indices** Covering major global stock market indices, allowing users to trade based on overall market trends. Examples: * Major U.S. stock indices * Major European stock indices * Major Asian stock indices **Crude Oil and Commodities** Covering crude oil and other popular global commodities, providing users with more TradFi CFD trading choices. Available products and trading parameters are subject to the real-time display on the YUBIT TradFi CFD trading page. #### 3. What Are the Key Features of YUBIT TradFi CFD? **1. One Account, Access Global Markets** There is no need to switch between multiple traditional financial platforms. Through YUBIT, users can participate in both Crypto and TradFi CFD markets on the same platform, covering gold, forex, stocks, indices, crude oil, and more. **2. Long and Short Trading** TradFi CFD supports: Buy / Long When you believe an asset price may rise, you can choose to buy. Sell / Short When you believe an asset price may fall, you can choose to sell. This means users may look for opportunities not only in rising markets, but also in falling markets based on their own judgment. **3. Leveraged Trading** YUBIT TradFi CFD supports leveraged trading, with some products supporting up to 500X leverage. Leverage can reduce the initial margin required to open a certain position size, but it also amplifies the impact of price movements on account equity. For example: When using higher leverage, even a small adverse market movement may have a significant impact on your margin level. Please choose leverage and position size carefully according to your own risk tolerance. Maximum leverage may vary by product. Please refer to the actual trading page for details. **4. Trade TradFi CFD Conveniently with USDT** Users can transfer USDT from their YUBIT account to their TradFi CFD account and then start TradFi CFD trading. There is no need to open an additional traditional securities or forex trading account, making participation in global traditional financial markets more convenient. **5. Broad Global Asset Selection** TradFi CFD is not limited to a single market. Users can seek trading opportunities across gold, forex, stocks, indices, crude oil, and other assets under different market conditions. Different assets have different volatility patterns and trading sessions. Users may select suitable products according to their trading strategies. #### 4. How Is TradFi CFD Different from Spot Trading? | Item | TradFi CFD | Spot Trading | | ----------------------------- | --------------------------------------------- | ------------------------------ | | Ownership of underlying asset | No | Yes | | Long trading | Supported | Supported | | Short trading | Supported | Usually not directly supported | | Leverage | Supported | Usually not supported | | Profit and loss source | Price difference between opening and closing | Asset price movement | | Physical delivery | No | Yes | | Markets | Gold, forex, stocks, indices, crude oil, etc. | Corresponding spot assets | The core of TradFi CFD is trading price movements, not holding the asset itself. #### 5. What Is a Lot? TradFi CFD usually uses “Lot” as the unit of trading size. A lot represents the size of the asset you are trading. The underlying asset quantity represented by 1 lot may vary by product. For example, in some gold products: 1 Lot = 100 ounces of gold If you trade: 0.1 Lot = a trading size equivalent to 10 ounces of gold Please note that contract sizes vary across TradFi CFD products. Before placing an order, be sure to check the product specifications, minimum lot size, and related parameters on the trading page. #### 6. How Are TradFi CFD Positions Managed? TradFi CFD position management may differ from some Crypto perpetual contracts. Each TradFi CFD position opened by a user is managed according to the corresponding order and market conditions. Even for the same asset, positions opened at different times may be displayed and managed separately. For example: If you open two XAUUSD buy positions separately, you may view and manage each position according to your trading strategy. Specific position display and available actions are subject to the YUBIT TradFi CFD trading page. #### 7. Is TradFi CFD Available 24/7? Not all TradFi CFD products are available 24/7. This is one of the key differences between TradFi CFD and Crypto markets. Crypto markets usually operate around the clock, while traditional financial assets such as gold, forex, stocks, indices, and crude oil usually have their own trading sessions. Different products may be affected by: * Global market opening and closing hours * Weekend closures * Public holidays * Temporary closures of underlying markets * Daylight saving time or winter time adjustments When the relevant market is closed, the corresponding TradFi CFD product may be temporarily unavailable for trading. Please refer to the YUBIT TradFi CFD page for actual trading hours. #### 8. What Is Margin Level? Margin level is an important indicator of TradFi CFD account risk. Simply put, it reflects current account equity relative to used margin. It can generally be understood as: Margin Level = Account Equity ÷ Used Margin × 100% Where: Account Equity = Account Balance + Floating PnL of current positions Used Margin = Margin occupied by current positions Example: If account equity is 1,000 USDT and the current position uses 500 USDT margin: Margin Level = 1,000 ÷ 500 × 100% = 200% A higher margin level usually means the account has more room to withstand adverse market movement. A continuously declining margin level indicates increasing account risk. #### 9. When Will Forced Liquidation Be Triggered? TradFi CFD uses margin trading, so users need to continuously monitor their account margin level. When the market moves against a position, floating losses reduce account equity and cause the margin level to fall. When the account margin level reaches the platform’s forced liquidation level, the system will trigger the forced liquidation mechanism. YUBIT TradFi CFD’s current forced liquidation margin level is 50%. That is: Margin Level ≤ 50% The system may begin forced liquidation of positions in the account to control further risk. Because TradFi CFD margin and liquidation mechanisms differ from Crypto perpetual contracts, please do not interpret TradFi CFD liquidation using the liquidation price logic of perpetual contracts. For details, please refer to “YUBIT TradFi CFD Liquidation Process”. #### 10. How to Start TradFi CFD Trading? You can quickly start TradFi CFD trading through YUBIT. **Step 1: Enter TradFi CFD** Log in to the YUBIT App or Web and enter the TradFi CFD trading page. **Step 2: Transfer Funds** Transfer USDT from your YUBIT account to your TradFi CFD account. **Step 3: Select a Product** Choose the TradFi CFD product you want to trade, such as gold, forex, stocks, indices, or crude oil. **Step 4: Choose a Trading Direction** Based on your market view, choose: Buy: if you expect the price to rise or Sell: if you expect the price to fall **Step 5: Set Trading Parameters** Set lot size, take-profit, stop-loss, and other parameters according to your trading strategy. **Step 6: Place the Order** Confirm the trading information and submit the order. After the order is filled, you can view and manage your position on the TradFi CFD positions page. #### 11. What Should Users Pay Attention to When Trading TradFi CFD? TradFi CFD is leveraged derivative trading. Before participating, please pay attention to the following: Leverage Risk Leverage may improve capital efficiency, but it also amplifies potential losses caused by market volatility. Market Volatility Risk Gold, forex, stocks, indices, and crude oil markets may move quickly due to macroeconomic data, central bank policies, earnings reports, geopolitical events, and other factors. Liquidity and Slippage Risk During severe market volatility, insufficient liquidity, or major events, the actual execution price may differ from the expected price. Trading Session Risk TradFi CFD products have specific trading hours. Liquidity and price volatility may change significantly during market closures, openings, or around major events. Forced Liquidation Risk When the account margin level reaches the platform’s forced liquidation level, the system may execute forced liquidation. Users are advised to control position size and leverage reasonably, and set take-profit and stop-loss according to their trading strategies. #### 12. FAQ **Q1: Do I actually own the stock or gold after trading TradFi CFD?** No. TradFi CFD is a financial derivative. Users participate in price movements of the underlying asset and do not actually hold stocks, gold, index constituents, or other underlying assets. **Q2: Can TradFi CFD be shorted?** Yes. TradFi CFD supports both buy and sell directions. If you believe the market may rise, you can buy. If you believe the market may fall, you can sell. **Q3: Does TradFi CFD support leverage?** Yes. Leverage ranges vary by TradFi CFD product. Some products support up to 500X leverage. Please refer to the YUBIT TradFi CFD trading page for details. **Q4: Why is TradFi CFD sometimes unavailable for trading?** TradFi CFD markets differ from Crypto markets, and not all products trade 24/7. Products such as gold, forex, stocks, indices, and crude oil have their own market trading hours and may be affected by weekends, holidays, and underlying market closures. **Q5: What is a Lot?** Lot is a common trading size unit in TradFi CFD. The contract size represented by 1 lot varies by product. Please check the product specifications before trading. **Q6: Can TradFi CFD trigger forced liquidation?** Yes. Because TradFi CFD is margin trading, the system may execute forced liquidation when the account margin level falls to the platform’s forced liquidation level. YUBIT TradFi CFD’s current forced liquidation margin level is 50%. #### Risk Warning TradFi CFD is a high-risk leveraged financial derivative. Leverage may amplify both profits and losses. In rapidly moving markets, you may lose part or all of your invested funds. Before trading TradFi CFD, please ensure that you fully understand the product mechanism, leverage, margin, forced liquidation, market volatility, liquidity, and other related risks, and participate prudently according to your experience, financial situation, and risk tolerance. This article is for product and trading mechanism explanation only and does not constitute investment advice. Actual TradFi CFD tradable products, trading parameters, leverage, and trading hours are subject to the real-time display on the YUBIT platform.