Tutorial on DigiFinex contract trading

Contract trading on DigiFinex involves speculating on the future price of an underlying asset without owning it, enabling traders to leverage market movements for potential profits and strategic portfolio management.

Nov 30, 2024 at 06:49 pm

Tutorial on DigiFinex Contract Trading

Harnessing the benefits and complexities of contract trading requires a comprehensive understanding of the intricacies involved. This tutorial will delve into the intricacies of contract trading on DigiFinex, empowering you to navigate the markets with confidence.

Step 1: Understanding Contract Trading

• Contract trading involves speculating on the future price of an underlying asset without physically owning it.
• Contracts have an expiration date, and traders can speculate on whether the underlying asset's price will rise or fall.
• Leverage trading allows traders to multiply their potential profits, but it also amplifies risks.

Step 2: Opening an Account on DigiFinex

• Visit the DigiFinex website and create an account.
• Complete the KYC process to ensure compliance.
• Fund your account using a supported cryptocurrency or fiat currency.

Step 3: Navigating the Contract Trading Interface

• Locate the "Contracts" tab on the DigiFinex website or app.
• Select the desired trading pair and contract type (e.g., USDT-BTC perpetual).
• The interface displays essential information such as market depth, price charts, and order book.

Step 4: Placing Orders

• Determine your trading strategy and choose between limit orders and market orders.
• Specify the number of contracts, entry price (for limit orders), and leverage ratio.
• Review the details and click "Buy" or "Sell" to place the order.

Step 5: Managing Risk

• Set stop-loss and take-profit orders to protect your capital.
• Monitor market conditions and adjust your positions accordingly.
• Understand the risks of leverage trading and use it cautiously.

Step 6: Closing Positions

• Close your positions manually by placing opposite orders (e.g., selling to close a buy position).
• Set up trailing stop-loss orders to automate profit-taking.
• Position closing fees and funding fees may apply.

Step 7: Profit Distribution

• Successful trades will result in profits, which are distributed to your DigiFinex account.
• Realized profits can be withdrawn or reinvested into other trading strategies.

Step 8: Advanced Contract Trading Features

• Conditional orders: Automate order execution based on specified triggers.
• Cross margin trading: Use funds from other trading accounts for leverage.
• Sub-accounts: Create multiple accounts for different trading strategies or risk management purposes.