Lesson 2

How Gate Stocks Connect to the U.S. Securities Market

For many users, one of the most important questions is: How does Gate Stocks actually enable stock trading? The core is not issuing stock tokens, but connecting users to the U.S. securities market through a compliant market access mechanism.

Gate Stocks Market Access Model

Gate Stocks uses the traditional securities market access model. By partnering with licensed U.S. brokers, users can participate in stock and ETF trading on the U.S. securities market. In this model, the platform focuses on solving the market access issue, not the asset mapping issue. Therefore, users are presented with a complete stock trading scenario rather than a tokenized asset trading scenario.

Why the Asset Coverage Is Broader

Most stock tokenization platforms currently only support a few hundred stock assets, while Gate Stocks now supports over 10,000 stocks and ETFs.

The markets covered include:

  • NYSE (New York Stock Exchange)

  • Nasdaq

  • NYSE Arca

  • NYSE American

  • BATS

This means users gain access to a wider range of assets and more tools for long-term investing and index allocation.

The Significance of U.S. Market Liquidity

In stock trading, liquidity directly affects the trading experience. Some tokenized stock products suffer from limited trading volume due to token issuance scale, resulting in insufficient liquidity, wider bid-ask spreads, and increased slippage.

Gate Stocks can access liquidity from major U.S. exchanges during market hours and provides National Best Bid and Offer (NBBO). For users, this means trading prices are closer to real market prices, improving execution efficiency and trading experience.

Gate Stocks vs. CFD Products

In traditional financial markets, some users participate in stock price movements via CFDs (Contracts for Difference), but Gate Stocks and CFDs are completely different product systems.

With Gate Stocks, users are buying, holding, and selling stock assets.

Additionally:

  • No perpetual contract funding rates

  • No CFD swap fees

  • No overnight holding fees

This makes it more suitable for users looking to allocate U.S. stocks for the long term.

Current Supported Trading Features

The product currently mainly supports market buy and sell orders during trading hours.

Users can:

  • Buy stocks

  • Sell stocks

  • Manage holdings

  • Check profit and loss

  • View transaction history

Features such as margin trading and securities lending will be gradually rolled out in the future.

Disclaimer
* Crypto investment involves significant risks. Please proceed with caution. The course is not intended as investment advice.
* The course is created by the author who has joined Gate Learn. Any opinion shared by the author does not represent Gate Learn.