DigiFinex Contract Beginner Tutorial

DigiFinex Contract Beginner Tutorial

DigiFinex is a popular cryptocurrency exchange that offers a wide range of features, including spot trading, margin trading, and futures contracts.

This guide will provide a basic overview of how to use DigiFinex's contract trading platform.

1. Create an Account and Fund It

The first step is to create an account on DigiFinex. Once you have created an account, you will need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another exchange or wallet, or by purchasing cryptocurrency with a credit or debit card.

2. Choose a Contract to Trade

DigiFinex offers a wide range of contract trading pairs, including BTC/USDT, ETH/USDT, and XRP/USDT. To choose a contract to trade, click on the "Contracts" tab at the top of the page. Then, select the contract pair that you want to trade.

3. Place an Order

Once you have chosen a contract to trade, you can place an order. To do this, click on the "Buy" or "Sell" button. Then, enter the number of contracts that you want to buy or sell. You can also enter a price at which you want to buy or sell the contracts.

4. Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Positions" tab at the top of the page. This tab will show you the status of your open orders, as well as your profit and loss.

5. Close Your Position

When you are ready to close your position, you can click on the "Close" button next to the order. This will close your position and sell the contracts at the current market price.

6. Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from DigiFinex. To do this, click on the "Withdraw" tab at the top of the page. Then, enter the amount of cryptocurrency that you want to withdraw and the address of the wallet that you want to withdraw it to.

FAQs

What is contract trading?

Contract trading is a type of derivatives trading that allows you to trade the price of an underlying asset without actually owning the asset. This can be a way to speculate on the price of an asset, or to hedge against risk.

What are the benefits of contract trading?

Contract trading can have several benefits, including:

• Leverage: Contract trading allows you to trade with more leverage than you would be able to if you were trading the underlying asset directly. This can increase your potential profits, but it can also increase your risk.
• Flexibility: Contract trading allows you to trade a wide range of assets, including stocks, commodities, and currencies. This gives you the flexibility to trade the assets that you are most interested in.
• Liquidity: Contract trading is a very liquid market, which means that you can easily buy and sell contracts. This can make it easier to enter and exit positions.

What are the risks of contract trading?

Contract trading can also have some risks, including:

• Leverage: As mentioned above, contract trading allows you to trade with more leverage than you would be able to if you were trading the underlying asset directly. This can increase your potential profits, but it can also increase your risk. It is important to manage your leverage carefully to avoid potential losses.
• Volatility: Contract trading can be a very volatile market, which means that the price of contracts can fluctuate rapidly. This can make it difficult to predict the direction of the market, and it can lead to losses.
• Margin calls: If the price of a contract moves against you, you may receive a margin call. This means that you will need to deposit more funds into your account in order to maintain your position. If you do not meet a margin call, your position may be liquidated, which could result in a loss.