What is TradFi?
TradFi — an abbreviation for Traditional Finance, meaning "traditional finance." Classic financial markets belong to TradFi: stock exchanges, the stock market, bonds, currency, gold, oil, etc.
On Binance, you can trade TradFi assets in futures trading mode. This means you do not buy the asset directly; any futures are predictions of the direction of price movement. Accordingly, to predict the direction of price movement for traditional assets, you need to be familiar with the market and with global events that can affect the price, including what is happening in international politics.
To start trading TradFi assets, you need to go to the futures trading section. Next, enable the filter for assets, select TradFi
Here you can find gold $XAU , silver $XAG , oil $CL , stocks of major companies like Micron, Western Digital, Samsung, LG, Amazon, SpaceX, and many others.
Next, trading works the same way as with crypto futures. Remember: you’re not buying gold—you’re opening a position that predicts the direction of the price movement. If you have any information suggesting gold will rise in price, open a Long position; if you believe gold has reached its peak price and will fall, open a Short position. The larger the % change in price relative to your forecast, the more you earn (or lose).
If you don’t have experience with futures, start with a small amount. This is a settings matter—reduce the leverage to 5x (5x leverage means that for every $1 of your own funds, you borrow $5 from the exchange, and this carries risks such as liquidation of your funds when the price moves against your forecast). Clicking on the arrow buttons lets you transfer the amount from your spot account.
The easiest way is to enter a position in Market mode. This means the order will be executed immediately at the market price. Cross mode means that all the funds you transferred to the futures account will be used in the position, but the position can be opened for any available amount—for example, for half of the asset value. Total available is $15; half is $7.5. With 5x leverage, your position size will be $7.5 × 5 minus fees—on Binance this would be shown as $34.61. Under the buttons you can also see the liquidation price in case the asset price goes against your forecast. If gold XAU is currently $4,317 and you go Long using half of the available funds—that is, you expect the price to rise—then the liquidation price will be $2,465. So you have a sufficient buffer to catch the growth moment and close the position in profit without a high liquidation risk.
What are the advantages of trading TradFi assets?
The main advantage is the ability to trade on a different market than the cryptocurrency market, where the main direction is set by Bitcoin and everything else moves along with it. Also, assets on the TradFi market are backed by solid capitalization, and opportunities to manipulate price are less restricted than on the crypto market. In addition, there is lower volatility, which allows you to build larger positions while following the corresponding risk limits.