Tutorial on how to play DigiFinex contracts

To play DigiFinex contracts, start by selecting the desired asset, choosing the contract type (futures or options), opening a position with the anticipated price direction, managing it through stop-loss orders, and closing it via an opposite order to secure profits or mitigate losses.

Nov 25, 2024 at 08:56 pm

Tutorial on How to Play DigiFinex Contracts

DigiFinex is a popular cryptocurrency exchange that offers a variety of trading features, including contracts. Contracts are a type of financial instrument that allows you to speculate on the future price of an asset.

In this tutorial, we will show you how to play DigiFinex contracts. We will cover the basics of contracts, including how to open and close a position, as well as some of the more advanced features of the DigiFinex contracts platform.

Step 1: Understanding Contracts

Contracts are a type of financial instrument that allows you to speculate on the future price of an asset. When you enter into a contract, you are essentially betting that the price of the asset will go up or down. If you are correct, you will make a profit. If you are incorrect, you will lose money.

There are two main types of contracts: futures and options. Futures contracts are binding agreements to buy or sell an asset at a set price on a future date. Options contracts give you the right, but not the obligation, to buy or sell an asset at a set price on a future date.

Step 2: Opening a Contract

To open a contract, you need to first select the asset that you want to trade. DigiFinex offers contracts on a variety of assets, including cryptocurrencies, commodities, and fiat currencies.

Once you have selected the asset, you need to choose the type of contract that you want to open. DigiFinex offers both futures and options contracts.

Futures contracts are more straightforward than options contracts. When you open a futures contract, you are betting that the price of the asset will go up or down. If you are correct, you will make a profit. If you are incorrect, you will lose money.

Options contracts give you the right, but not the obligation, to buy or sell an asset at a set price on a future date. This gives you more flexibility than futures contracts, but it also makes options contracts more complex.

Step 3: Managing Your Position

Once you have opened a contract, you need to manage your position. This involves monitoring the price of the asset and making adjustments to your position as needed.

There are a number of different ways to manage your position. You can use stop-loss orders to limit your losses, or you can use take-profit orders to lock in your profits. You can also use trailing stop-loss orders to automatically adjust your stop-loss price as the price of the asset moves.

Step 4: Closing a Contract

When you are ready to close your contract, you need to do so by placing an opposite order. For example, if you opened a long contract, you would need to place a short contract to close your position.

If you are profiting from your contract, you can close it by placing a take-profit order. This will sell your contract at a profit and lock in your gains.

If you are losing money on your contract, you can close it by placing a stop-loss order. This will sell your contract at a loss and limit your losses.