DigiFinex contract trading process

DigiFinex's meticulous contract trading process, encompassing account setup, fund management, contract selection, order placement, position monitoring, risk management, and earnings withdrawal, empowers traders to navigate the crypto market with confidence.

Nov 23, 2024 at 09:16 pm

DigiFinex Contract Trading Process

DigiFinex, a leading digital asset exchange, offers a comprehensive suite of contract trading services, enabling traders to speculate on the future price movements of various cryptocurrencies. The contract trading process on DigiFinex involves several key steps:

1. Account Creation and Verification:

   • Register for a DigiFinex account by providing personal information, email address, and password.
   • Complete the identity verification process by submitting government-issued identification documents.

2. Deposit Funds:

   • Transfer cryptocurrencies from an external wallet or purchase them directly through DigiFinex.
   • Ensure that your account balance is sufficient to cover the initial margin and potential losses.

3. Choose Contract Type:

   • DigiFinex offers various contract types, including perpetual futures and quarterly futures.
   • Perpetual futures contracts are perpetual contracts without an expiry date, while quarterly futures contracts expire on a quarterly basis.

4. Select Trading Pair:

   • Choose the desired cryptocurrency pair, such as BTC/USDT, ETH/USDT, or XRP/USDT.

5. Set Leverage:

   • Leverage allows traders to increase their potential profits and losses by multiplying their initial investment.
   • DigiFinex offers a range of leverage options from 1x to 100x, depending on the contract type and trading pair.

6. Determine Trade Direction:

   • Decide whether to open a long position (expecting the asset price to rise) or a short position (expecting the asset price to fall).

7. Place Order:

   • Specify the order type, quantity, price, and leverage.
   • Order types include market orders (executed at the current market price), limit orders (executed at a specific price), and stop-loss orders (executed when the asset price reaches a predetermined level).

8. Monitor Position:

   • Track the performance of the open position in real-time.
   • Monitor profit and loss, margin utilization, and potential liquidation risks.

9. Manage Risk:

   • Use stop-loss orders to limit potential losses.
   • Adjust leverage and position size based on market conditions and risk tolerance.

10. Close Position:

    • To realize profits or cut losses, close the open position by placing an opposite order.
    • Closing a long position involves selling the underlying asset, while closing a short position involves buying it.

11. Withdraw Earnings:

    • Transfer the realized profits or the remaining balance back to your external wallet.

Additional Considerations:

• Understanding Contract Trading: It is crucial to understand the concepts, risks, and benefits of contract trading before engaging in this activity.
• Market Research: Conduct thorough market research to identify potential trading opportunities and make informed decisions.
• Risk Management: Implement effective risk management strategies to minimize potential losses and protect your capital.
• Trading Psychology: Develop a disciplined trading approach and manage emotions to avoid impulsive and reckless trading decisions.
• Discipline and Patience: Successful contract trading requires discipline, patience, and a commitment to continuous learning and improvement.