How to close a contract on DigiFinex

To successfully close a perpetual contract on DigiFinex, ensure you meet the prerequisites, follow the step-by-step instructions meticulously, consider advanced strategies, and monitor market volatility for optimal outcomes.

Nov 25, 2024 at 10:11 am

Navigating DigiFinex: A Comprehensive Guide to Contract Closure

DigiFinex, a renowned digital asset exchange, offers a diverse range of trading instruments, including perpetual contracts. Closing these contracts efficiently is crucial for managing risk and maximizing profits. This meticulously crafted guide will lead you through the intricate steps involved in contract closure on DigiFinex.

Prerequisites for Contract Closure

Before embarking on the contract closure process, ensuring you meet specific prerequisites is paramount.

• Active Account: Access to an active DigiFinex account is essential.
• Sufficient Margin: Adequate margin must be maintained in your account to cover any potential losses upon contract closure.

Step-by-Step Instructions for Closing a Contract on DigiFinex

Follow these meticulously outlined steps to seamlessly close a contract on DigiFinex:

1. Locate the Contract Position:
   Navigate to the "Contracts" section from the DigiFinex homepage. Identifying the specific contract position you wish to close is essential. The active contracts will be displayed in the "Positions" tab.
2. Select the Close Option:
   Locate the "Actions" column corresponding to the desired contract and click on the "Close" option.

3. Adjust Closing Parameters:
   A pop-up window will appear, allowing you to modify specific parameters related to the contract closure. These include:

   • Close Type: Choose between "Market Close" for immediate closure or "Limit Close" if you prefer a specific execution price.
   • Close Price: Specify the desired price at which to close the contract in Limit Close mode.
   • Adjust Leverage: Modifying the leverage may be necessary to align with risk management strategies.
4. Confirm Contract Closure:
   Carefully review the contract closure details, including the closing price, fees, and margin impact. Once satisfied, click on the "Confirm" button to execute the closure.
5. Monitor Contract Closure Status:
   The contract closure process may take a few moments to complete. Monitor the progress in the "Order History" section under the "Contracts" tab.

Advanced Considerations for Contract Closure

Beyond the basic steps, consider the following advanced considerations to optimize the contract closure process:

1. Partial Closure: DigiFinex allows for partial contract closure, enabling you to adjust your position size. This flexibility offers greater control over risk management.
2. Stop-Loss and Take-Profit Orders: Utilizing stop-loss and take-profit orders can automate contract closure based on pre-defined price levels, reducing the need for constant monitoring.
3. Effective Margin Management: Prudent margin management is critical. Monitor your margin utilization and adjust leverage accordingly to avoid potential liquidation risks.
4. Market Volatility: Be mindful of market volatility, as sudden price fluctuations can impact contract closure outcomes. Adapt your closing strategy to prevailing market conditions.