Unveiling Gate Stock Tokens: How to Achieve 24/7 Continuous Trading?

In traditional financial markets, limited trading hours have long been a challenge for investors. Major markets like the New York Stock Exchange and NASDAQ have fixed opening and closing times, with full market closures on weekends and holidays. However, on the Gate platform, all of this is being redefined. Through innovative stock tokens, investors can now enjoy 24/7 uninterrupted trading experiences. How is this achieved? This article will provide an in-depth analysis.

What Are Stock Tokens?

Stock tokens are a revolutionary financial product launched by Gate. They are digital assets issued on the blockchain that represent economic rights to traditional listed company stocks (such as Apple, Tesla, etc.). Each stock token is pegged 1:1 to the underlying stock held in a custodial bank account. Holding a stock token means you own a corresponding share of the actual stock and can participate in price fluctuations.

Compared to traditional stock trading, the biggest breakthrough of stock tokens lies in their digital, global, and unlimited nature. Relying on blockchain technology, they bring traditional financial assets into the crypto world, breaking down geographical and temporal barriers.

The Core Mechanism Behind 24/7 Trading

Empowerment by Blockchain Technology

Traditional stock markets rely on centralized institutions for trading, clearing, and settlement, which operate during specific working hours. In contrast, stock tokens are issued and circulated on blockchain (usually efficient public chains). Blockchain networks are inherently 24/7 distributed ledgers, allowing any transaction to be verified and recorded on-chain in real-time without waiting for traditional financial processing windows.

Continuous Liquidity via Market Makers

To ensure smooth trading around the clock, Gate collaborates with multiple professional market makers. Market makers continuously provide bid and ask quotes, so users can always find counterparties for transactions. Even when US stock markets are closed, market makers will provide reasonable quotes for stock tokens based on related futures markets, global market conditions, and intrinsic asset value, maintaining uninterrupted liquidity.

Cross-Market Price Synthesis and Discovery

After US markets close, the price of stock tokens does not remain static. Its price discovery mechanism considers:

• The recent closing price of the underlying stock
• Prices from other international exchanges still trading (e.g., after US market hours, referencing its depositary receipts trading on the Frankfurt Stock Exchange)
• Price trends of related stock index futures (e.g., NASDAQ 100 futures trade 24/7)
• Overall market supply, demand, and sentiment

Through algorithms and market maker models, Gate’s stock tokens can synthesize a continuous, reasonable market price, achieving smooth integration of global prices.

How Gate Stock Tokens Work

1. Asset Pegging and Issuance: Partner institutions purchase real stocks and deposit them into custodial accounts, then issue corresponding stock tokens on-chain.
2. 24/7 Trading: Users can buy and sell these tokens anytime on the Gate platform, with a trading experience similar to trading cryptocurrencies.
3. Rights and Benefits: Users holding stock tokens legally enjoy the economic rights of the underlying stocks (such as potential dividends, which Gate may distribute via airdrops or other methods).

Why Trade Stock Tokens on Gate?

• Unlimited Trading Hours: Break free from traditional market time constraints, responding to market changes anytime, anywhere.
• Lower Entry Barriers: Trade fractional shares; for example, when Tesla’s stock price exceeds $1,000, you can participate with less capital.
• Efficient and Convenient: Manage assets by trading both cryptocurrencies and top global company stocks with a single Gate account.
• Secure and Transparent: Underlying assets are held by regulated custodians, with on-chain transaction records openly verifiable, ensuring asset security.

Summary

Through stock tokens, Gate is building a bridge that integrates traditional finance with crypto finance. 24/7 trading is not just a breakthrough in time; it also symbolizes the democratization and globalization of financial markets—allowing investors worldwide to access and trade the world’s best assets equally and instantly.

Whether you are a crypto native enthusiast or a traditional investor seeking more flexible investment tools, Gate stock tokens open a new door for you. Explore the Gate platform now and experience an endless financial market.