Bitget TradFi 101: Essential Gold Trading Terms You Need to Know

Since Bitget launched TradFi services in 2025, crypto traders can now use USDT as margin in a single account to trade major traditional assets worldwide, including gold CFDs (typically quoted as XAUUSD). This innovation lets crypto traders access the gold market seamlessly, without opening a traditional brokerage account or converting fiat currency. Below, we explain key terminology specific to gold trading.

These terms are based on core gold trading concepts (such as lot size, leverage, and overnight interest), combined with mainstream CFD trading standards commonly used on high-leverage platforms, as well as Bitget TradFi's unique features—including up to 500x leverage, USDT margin, 24/7 trading, and low fees. For clarity and practical application, the terms are categorized into three sections: trade execution, risk management, and cost management.

Trade execution terminology

1. Lot: A lot is the minimum/standard trading unit in gold CFD trading and is used to determine position size.

○ 1 lot = 100 troy ounces of gold (approximately 3110.35 grams).

○ Notional value example: If gold is priced at $2650 per ounce, the notional value of 1 lot is $265,000.

○ Bitget TradFi advantage: The minimum tradable unit can be as low as 0.01 lot (equivalent to 1 ounce), making it suitable for users with smaller starting capital. Lot size directly affects PnL calculation: PnL = (exit price – entry price) × lot size × futures multiplier (typically 1) – fees.

2. Spread: The spread is the difference between the ask price and the bid price, representing a primary implicit trading cost.

○ Example: XAUUSD quote: Bid $2650.00 / Ask $2650.50 → Spread = $0.50.

○ A spread cost is incurred immediately when opening a position (buying at the ask price or selling at the bid price).

○ Bitget TradFi feature: Offers highly competitive tight spreads, combined with fees as low as $0.09 per lot, resulting in lower overall trading costs.

3. Order types: Bitget TradFi supports multiple order types to accommodate different trading strategies:

○ Market order: Executes immediately at the best available market price; suitable for fast entry, such as during news-driven moves.

○ Limit order: Placed to buy below or sell above the current market price and executed only when the specified price is reached.

○ Stop-loss order: Triggers a market order once the price reaches a specified level, commonly used in breakout strategies.

○ Advanced order types: Such as trailing stops, which automatically adjust the stop-loss level as the price moves favorably. For gold trading, using limit or stop-loss orders around major news events (like FOMC rate decisions) is often recommended to capture opportunities.

4. Take profit (TP) and stop loss (SL)

○ Take profit (TP): A preset price level that automatically closes a position to lock in gains.

○ Stop loss (SL): A preset price level that automatically closes a position to limit potential losses.

○ Example: Open a long position at $2650, set TP at $2680 (profit of $30 per ounce), and SL at $2630 (loss of $20 per ounce).

○ On Bitget TradFi, users are strongly encouraged to set TP and SL for every trade—a point repeatedly emphasized in our tutorials—especially when using high leverage, as these tools are essential for capital protection.

Risk management terminology

1. Leverage: Leverage allows you to control a larger position with a relatively small amount of capital and is a core feature of CFD trading.

○ Bitget TradFi: Supports leverage of up to 500x. Users can manually adjust to lower levels (for example, 10x–50x) for better risk control.

○ Example: 1000 USDT with 500x leverage allows you to control a gold position with a notional value of approximately $500,000.

○ Mechanics: Required margin = Notional value ÷ leverage. Leverage amplifies both profits and losses, so higher potential returns also mean higher risk.

○ Recommendation: Beginners are advised to start with lower leverage (such as 10x–30x) to avoid rapid liquidation caused by over-leveraging.

2. Margin and margin level/margin ratio

○ Margin: The funds required to open or maintain a position (also referred to as initial margin or used margin). On Bitget TradFi, USDT is used as margin and is automatically converted to USD for settlement.

○ Margin ratio: Account equity ÷ used margin × 100%.

■ When the margin level is above 100%, the account is generally considered safe. When it approaches or falls below the platform's threshold (such as 100% or lower), a margin call may be triggered.

■ If it continues to fall to a critical level (such as 50%, or the platform's specified level), liquidation will be triggered.

○ Bitget TradFi follows the classic CFD risk model, where liquidation is primarily triggered based on margin ratio—unlike some crypto perpetual futures that rely on estimated liquidation prices.

○ Risk warning: Under high leverage, even small price movements can cause the margin level to drop rapidly. Strict risk management is essential.

3. Liquidation

Liquidation is one of the most critical risk control mechanisms on Bitget TradFi (including XAUUSD gold CFD trading). It refers to the system automatically closing part or all of a user's positions when account risk reaches a critical level, in order to prevent account equity from turning negative.

● Trigger condition: Liquidation is triggered automatically when the account's margin ratio ≤ 50%.

● Margin ratio/level calculation formula: Margin ratio/level = (Total account equity ÷ used margin) × 100%

○ Total account equity = Account balance + total unrealized PnL (from all open positions).

○ Used margin = The total maintenance margin required for all current open positions.

● Suppose your account balance is 1000 USDT. You open a long gold position with high leverage and incur an unrealized loss of –600 USDT. Your equity becomes 1000 – 600 = 400 USDT. If your used margin is 800 USDT, then margin level = (400 ÷ 800) × 100% = 50% → liquidation is triggered.

Cost management terminology

1. Overnight fee/swap: A fee paid or received for holding a position overnight (typically the server's rollover time at 12:00 AM), reflecting the interest rate differential between the two currencies involved.

○ For XAUUSD: Long (bullish) positions typically incur an overnight fee (as gold is treated as a higher-interest asset), while short (bearish) positions may receive an overnight credit.

○ Bitget TradFi feature: Overnight fees are typically low.

○ Positions held overnight on Wednesdays usually incur triple charges to account for weekend rollover.

○ Recommendation: Short-term traders can avoid cumulative costs by limiting overnight holds, while long-term traders should factor overnight fees into their overall cost calculations.

2. Transaction fees

Transaction fees are the most direct and explicit trading cost on Bitget TradFi. They are charged by the platform when opening and closing positions, either as a fixed amount or on a per-lot basis. Together with the spread, they form the main cost components of CFD trading. Overall, Bitget TradFi's transaction costs are significantly lower than those of traditional forex/CFD brokers and some crypto futures platforms.

● Minimum fee: As low as $0.09 per lot. This applies to a standard 1 lot position (the mainstream standard for gold CFDs is 100 ounces) for a round turn (opening and closing a position; fees may be charged separately for each side or combined, depending on platform rules). Example: Trading 1 lot of XAUUSD may result in a total open + close fee of approximately $0.18 (subject to specific fee rules), which is substantially lower than the $3–$10 per lot typically charged by traditional brokers.

● VIP/tiered discounts: Fees are further reduced based on trading volume and VIP level. High-frequency or large-volume traders can enjoy even lower fees per lot, potentially close to zero.

● Fee collection:

○ Fees are directly deducted from the account balance.

○ When opening a position, the system primarily checks whether sufficient margin is available; fees are deducted after execution. If the balance is insufficient to cover fees, this may affect the position or trigger immediate partial liquidation.

○ No hidden fees: Bitget TradFi emphasizes transparent maker/taker pricing with no hidden costs, supported by institutional-grade liquidity and low slippage.

When trading gold CFDs on Bitget TradFi, remember that high leverage, low entry barrier, and 24/7 trading flexibility are its greatest advantages, but they also come with elevated risk. Always start with small lot sizes and low leverage, set strict take-profit and stop-loss orders, and assess your personal risk tolerance rationally.

Learn more: Key Terms in Gold Trading (Part 1)