Gold falls below $4,500, what are the changes in overnight financing and funding rates for Gate Metal Contracts?

When trading metal contracts on Gate, understanding the complete fee structure is key to optimizing trading costs. Unlike traditional metal investments, Gate metal contracts involve various fee types, including commissions, funding rates, overnight (swap) fees, and bid-ask spreads. This article will systematically break down the fee rules based on Gate’s latest mechanisms, helping traders clearly understand the components of holding costs.

Two Main Types of Metal Contracts and Fee Differences

On the Gate platform, metal contracts are mainly divided into two structures, each with fundamentally different fee logic.

Perpetual contracts are the core products in Gate’s metal section, supporting gold (XAUUSDT) and silver (XAGUSDT). These contracts have no expiration date, allowing traders to hold positions indefinitely. Their holding costs primarily come from funding rates—periodic payments exchanged between longs and shorts designed to keep the contract price anchored to the spot index.

Traditional Finance (TradFi) contracts (CFDs) follow conventional financial market rules, with fixed trading hours and market close periods. The main holding cost for these is the overnight (swap) fee, reflecting the cost of funding the position overnight. The fee structures also differ between the two contract types and should be distinguished based on the specific trading instrument.

Funding Rate: The Core Cost for Perpetual Contracts

For perpetual contracts traded in Gate’s metal section, the funding rate is a key factor affecting holding costs.

How Funding Rates Work

Funding rates are not fees charged by the platform but are payments exchanged between long and short positions. When the funding rate is positive, longs pay shorts; when negative, shorts pay longs. This mechanism helps keep the perpetual contract price close to the spot index.

Settlement Frequency and Timing

Gate’s precious metals perpetual contracts typically settle funding every 8 hours. When holding a position at the settlement time, the system automatically deducts or credits the corresponding fee from your account balance. Traders planning to hold positions long-term should check real-time funding rates on the trading interface and include these costs in their overall calculations.

Relationship with Market Depth

Funding rates are influenced by the imbalance of buy and sell pressures. When market sentiment is highly aligned, rates can rise significantly, increasing holding costs. Traders can view the current funding rate levels on the Gate contract details page before trading.

Overnight Fees: Holding Costs for TradFi Contracts

When trading metal CFDs (such as XAU/USD, XAG/USD) in Gate’s TradFi section, holding a position overnight incurs an overnight (swap) fee.

Timing and Applicable Scenarios

Gate typically settles overnight fees during early morning Beijing time (specific times are shown on the platform). These fees are only applicable to certain trading pairs in the TradFi section, mainly gold and silver CFDs.

Two-Way Fee Logic

• Long positions: Usually pay overnight fees (borrowing funds to buy)
• Short positions: Usually receive overnight fees (deposit funds and earn interest)

Note that during interest rate inversions or platform spread adjustments, short positions may also incur costs.

How Overnight Fees Are Calculated

The swap fee for Gate’s TradFi metal contracts is calculated as:

Swap Fee = Position Size × Contract Quantity × Price Precision × Swap Rate × Swap Multiplier

Key factors influencing the fee include:

• Position Size: Larger volume results in higher absolute fees
• Trade Direction: Different rates for long and short
• Holding Duration: Calculated daily; holding over weekends may incur three days’ worth of fees

Three-Day Swap Rule

Because markets are closed on weekends, Gate settles positions at a designated weekly date (usually Wednesday) using a three-day swap rate to cover Saturday and Sunday interest costs. This aligns with traditional financial market practices.

Commissions: Fixed Costs at Opening

Regardless of perpetual or TradFi contracts, opening and closing positions incur commissions.

TradFi Metal Contract Commissions

Gate’s TradFi metal contracts use a fixed per-lot fee. According to the official fee schedule, the commission is $6 per lot for VIP below level 5, and $5.4 per lot for VIP level 5 and above.

This fixed fee model offers cost certainty for small to medium positions and high-frequency trading compared to percentage-based fees.

Perpetual Contract Commissions

Perpetual contracts employ a Maker/Taker fee structure. Makers (limit orders) generally pay lower fees, Takers (market orders) pay higher. Using limit orders strategically can reduce overall trading costs.

Spreads: Hidden Trading Costs

The spread—the difference between buy and sell prices—is an implicit cost of trading. It also contributes to overall trading expenses.

In Gate metal contracts, spreads are affected by market liquidity, trading hours, and contract type. TradFi contracts follow traditional market hours, and spreads may widen during off-hours. Traders should observe the current bid-ask spread before placing orders to understand actual costs.

Other Fee Considerations

Dividend and Adjustment for Dividends

When the index components pay dividends, the index price naturally drops. Gate adjusts fairly by crediting long holders with cash and deducting from short holders’ accounts accordingly. This adjustment applies only to positions held on the ex-dividend date and is handled automatically.

Fund Transfers

Transferring USDT from the main account to the contract account within Gate’s metal contracts incurs no additional fee.

Latest Metal Market Prices

As of March 27, 2026, market data shows continued corrections:

• Gold: $4,419.28, down 2.44% in 24 hours
• Silver: $68.66, down 4.21%
• Tether Gold (XAUT): down 2.40% to $4,415.6
• PAX Gold (PAXG): down 2.46% to $4,421.6

Industrial metals saw slight declines: copper down 0.15%, nickel down 0.33%, lead stable, aluminum up 0.89%. Overall market pressure remains, with continued outflows from sector funds.

How to Check Real-Time Rates

Traders can verify specific rates before opening positions via:

1. Access the Gate app or website, select the relevant metal contract trading pair
2. View “Contract Info” or “Specifications” section
3. For perpetuals, see real-time funding rates and next settlement time
4. For TradFi contracts, check overnight interest rates (buy and sell rates)
5. Use trading calculators to estimate holding costs

Summary

Understanding Gate’s metal contract fee structure is fundamental for professional trading. The core cost for perpetual contracts is the funding rate settled every 8 hours; for TradFi contracts, it’s the daily overnight fee. Both contract types incur commissions, with TradFi contracts charging a fixed $6 per lot. Before trading, always check the latest rates on Gate’s official site or app and incorporate these costs into your overall trading strategy.