🟡 TradFi for beginners: how does it work in simple terms?
**TradFi** is the Binance segment that gives you access to traditional financial markets within the Binance ecosystem: for example, to gold, silver, stocks, and ETFs—depending on whether a specific product is available in your region.
But there’s an important detail: **trading an asset ≠ owning the asset itself**.
How does it work?
Let’s imagine gold.
🔹 You think the price of gold will go up.
→ you open a **Long**.
🔹 The price of gold increases.
→ your position makes a profit.
🔹 If the price falls.
→ your position makes a loss.
At the same time, you **don’t buy physical gold**. With TradFi Perpetuals, you trade a derivative whose price is linked to the underlying asset’s price. Calculations are done in USDT.
What are Long and Short?
Long — you open a position when you expect the price to rise.
Short — when you expect the price to fall.
So you can profit not only from price increases, but also from downward price movement.
What should a beginner know?
Before opening a position, you should check:
• what exact instrument it is;
• what underlying asset it tracks;
• position size and margin;
• fees and other costs;
• whether leverage is used;
• under what conditions the position can be liquidated.
**TradFi** is the Binance segment that gives you access to traditional financial markets within the Binance ecosystem: for example, to gold, silver, stocks, and ETFs—depending on whether a specific product is available in your region.
But there’s an important detail: **trading an asset ≠ owning the asset itself**.
How does it work?
Let’s imagine gold.
🔹 You think the price of gold will go up.
→ you open a **Long**.
🔹 The price of gold increases.
→ your position makes a profit.
🔹 If the price falls.
→ your position makes a loss.
At the same time, you **don’t buy physical gold**. With TradFi Perpetuals, you trade a derivative whose price is linked to the underlying asset’s price. Calculations are done in USDT.
What are Long and Short?
Long — you open a position when you expect the price to rise.
Short — when you expect the price to fall.
So you can profit not only from price increases, but also from downward price movement.
What should a beginner know?
Before opening a position, you should check:
• what exact instrument it is;
• what underlying asset it tracks;
• position size and margin;
• fees and other costs;
• whether leverage is used;
• under what conditions the position can be liquidated.