How to make contracts on DigiFinex

Contract Creation on DigiFinex: Creating contracts on DigiFinex involves account creation, funding, contract selection, trading strategy formation, order placement, position monitoring, and eventual position closure.

Dec 01, 2024 at 10:43 pm

How to Make Contracts on DigiFinex

Introduction

DigiFinex is a renowned cryptocurrency exchange that offers a wide range of trading and investment options, including perpetual contracts. Perpetual contracts, also known as perpetual futures, are financial instruments that allow traders to speculate on the future price of an underlying asset without the need for physical delivery. This article will provide a comprehensive guide on how to make contracts on DigiFinex, including the steps involved, the different types of contracts available, and the potential risks and rewards associated with contract trading.

Steps to Make Contracts on DigiFinex

1. Create an Account

The first step to making contracts on DigiFinex is to create an account. The account creation process is simple and straightforward, requiring only basic personal information and a valid email address. Once your account has been created, you will need to verify your identity by providing government-issued identification documents. This step is essential for security purposes and ensures compliance with regulatory requirements.

2. Fund Your Account

Once your account has been verified, you will need to fund it with the necessary funds to trade contracts. DigiFinex supports a variety of funding methods, including bank transfers, credit/debit card deposits, and cryptocurrency deposits. Select the most convenient method for you and follow the instructions to transfer funds into your DigiFinex account.

3. Select a Contract

DigiFinex offers a wide range of perpetual contracts based on different underlying assets, such as Bitcoin, Ethereum, and various altcoins. Each contract has its own unique specifications, including the underlying asset, contract size, leverage ratio, and funding rate. Carefully review the contract specifications before selecting the one that best aligns with your trading strategy.

4. Choose a Trading Strategy

Before making a trade, it is important to have a clearly defined trading strategy. This includes identifying your profit targets, stop-loss levels, and risk management parameters. Develop a trading plan that outlines your entry and exit points, as well as your position sizing and risk tolerance.

5. Place an Order

Once you have selected a contract and developed a trading strategy, you can proceed with placing an order. Specify the order type (limit or market), the contract size, and the desired price for your order. Review the order details carefully before submitting it to the market.

6. Monitor Your Position

Once your order has been filled, it is important to monitor your position closely. Track the market price in relation to your entry point and stop-loss level. Make adjustments to your position as needed to manage risk and maximize your trading performance.

7. Close Your Position

When you are ready to exit the trade, place an order to close your position. You can choose to close your position manually by placing a limit