How to increase leverage on DigiFinex

Leverage on DigiFinex grants traders the ability to amplify both profits and losses by utilizing more funds than initially invested in the account, highlighting the significance of employing caution during leveraged trading.

Nov 23, 2024 at 05:58 pm

How to Increase Leverage on DigiFinex

DigiFinex is a cryptocurrency exchange that offers leveraged trading. This means that you can trade with more money than you have in your account, which can amplify your profits (or losses). However, it's important to use leverage carefully, as it can also lead to significant losses if not managed properly.

If you're new to leveraged trading, it's important to start with a small amount of leverage and gradually increase it as you become more experienced. You should also be aware of the risks involved and have a plan in place to manage your risk.

Steps to Increase Leverage on DigiFinex:

1. Open an account on DigiFinex.
2. Fund your account with cryptocurrency.
3. Navigate to the "Margin Trading" page.
4. Select the trading pair you want to trade.
5. Choose the amount of leverage you want to use.
6. Confirm your order.

Tips for Using Leverage on DigiFinex:

• Start with a small amount of leverage and gradually increase it as you become more experienced.
• Be aware of the risks involved and have a plan in place to manage your risk.
• Use stop-loss orders to limit your losses.
• Don't trade with more money than you can afford to lose.
• Monitor your positions regularly and adjust your leverage accordingly.

Risks of Using Leverage on DigiFinex:

• Losses can be amplified. When you use leverage, you're trading with more money than you have in your account. This means that your losses can be amplified if the market moves against you.
• Margin calls. If the market moves against you and your losses exceed your margin, you will receive a margin call. This means that you will need to deposit more funds into your account or close your position.
• Liquidation. If you fail to meet a margin call, your position will be liquidated. This means that your assets will be sold to cover your losses.

Conclusion:

Leverage can be a powerful tool, but it's important to use it carefully. If you're not experienced in leveraged trading, it's best to start with a small amount of leverage and gradually increase it as you become more confident. Remember, leverage can amplify your profits, but it can also amplify your losses.