How to stop falling leverage on DigiFinex

To prevent excessive losses on DigiFinex's leveraged trades, traders should implement stop-loss orders, reduce leverage, close positions manually, deposit additional funds, and seek support from customer service when necessary.

Nov 26, 2024 at 11:59 pm

How to Stop Falling Leverage on DigiFinex

DigiFinex is a cryptocurrency exchange that offers leveraged trading. This means that traders can borrow funds from the exchange to increase their trading positions. However, if the market moves against the trader, they may lose more money than they originally invested.

There are a few things that traders can do to stop falling leverage on DigiFinex:

1. Set a Stop-Loss Order:

A stop-loss order is an order to sell a security when it reaches a certain price. This can help to limit losses if the market moves against the trader. Traders should work on setting up stop-loss orders with good strategies because sometimes the market may flash crash or have a huge movement in a short time frame.

2. Reduce Leverage:

If a trader is using too much leverage, they may be more likely to lose money. Reducing leverage can help to reduce the risk of a margin call - when the trader's account balance goes below a certain level, and the exchange will automatically close the leveraged positions to avoid further loss, which may cause even more negative effects.

3. Close Positions Manually:

If the market is moving against the trader, they can close their positions manually. This will help to prevent further losses. Sometimes it is better to close positions manually than wait for the stop-loss order to fulfill. It all depends on the personal strategy as well as the market condition.

4. Deposit More Funds:

If a trader's account balance is getting low, they can deposit more funds to avoid a margin call. This can help to keep the positions open and give the trader a chance to recover their losses. Traders need to consider the overall market conditions and technical indicators to make a better decision because it is not wise to add more funds into the trading account when the market is at the top of the trend.

5. Contact Customer Support:

If a trader is having trouble stopping falling leverage, they can contact DigiFinex customer support for help. Customer support will be able to help the trader close their positions, reduce leverage or take other steps to protect their account.

By following these steps, traders can help to stop falling leverage on DigiFinex and protect their trading capital.