How to sell DigiFinex perpetual contract

How to Sell DigiFinex Perpetual Contract

Perpetual contracts, also known as perpetual futures or inverse swaps, are financial instruments that allow traders to speculate on the future price of an underlying asset without having to take physical delivery of the asset. DigiFinex is a cryptocurrency exchange that offers perpetual contracts for a variety of digital assets, including Bitcoin, Ethereum, and Litecoin.

Selling a perpetual contract means that you are betting that the price of the underlying asset will go down. If the price of the asset does go down, you will make a profit. However, if the price of the asset goes up, you will lose money.

Selling a perpetual contract on DigiFinex is a relatively simple process. However, it is important to understand the risks involved before you trade.

Step 1: Fund Your DigiFinex Account

Before you can sell a perpetual contract on DigiFinex, you need to fund your account with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency directly on DigiFinex.

Step 2: Open a Position

Once you have funded your account, you can open a position by clicking on the "Perpetual" tab in the DigiFinex trading interface.

On the perpetual trading page, you will need to select the asset that you want to trade, the leverage that you want to use, and the amount of the contract that you want to sell.

Step 3: Monitor Your Position

Once you have opened a position, you need to monitor it closely. The price of the underlying asset can change quickly, and you need to be prepared to adjust your position accordingly.

You can monitor your position by clicking on the "Positions" tab in the DigiFinex trading interface.

Step 4: Close Your Position

When you are ready to close your position, you can do so by clicking on the "Close" button in the DigiFinex trading interface.

You will need to specify the amount of the contract that you want to close and the price at which you want to close it.

Step 5: Withdraw Your Profits

Once you have closed your position, you can withdraw your profits by clicking on the "Withdraw" tab in the DigiFinex trading interface.

You will need to specify the amount of cryptocurrency that you want to withdraw and the wallet address that you want to withdraw it to.

Risks of Selling Perpetual Contracts

Selling perpetual contracts is a risky activity. The price of the underlying asset can change quickly, and you could lose money if you are not careful.

Here are some of the key risks associated with selling perpetual contracts:

• Liquidation: If the price of the underlying asset moves against you, you could be liquidated. This means that you will be forced to sell your position at a loss.
• Margin calls: If you are using leverage, you could be subject to margin calls. This means that you will need to add more funds to your account or your position will be liquidated.
• Volatility: The price of the underlying asset can be very volatile, which can make it difficult to predict how your position will perform.

It is important to understand these risks before you sell a perpetual contract. You should only trade with money that you can afford to lose.