DigiFinex Contract Tutorial

Contract trading on DigiFinex, a reputable cryptocurrency exchange, involves speculating on the future price movements of underlying assets without owning them, allowing traders to explore opportunities and risks associated with this advanced strategy.

Nov 27, 2024 at 06:26 am

DigiFinex Contract Tutorial: A Comprehensive Guide to Trading Cryptocurrency Futures

DigiFinex Contract Overview

DigiFinex is a reputable cryptocurrency exchange that offers a wide range of trading services, including spot trading, margin trading, and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of a cryptocurrency without actually owning the underlying asset.

By understanding the basics of contract trading, traders can explore the opportunities and risks associated with this advanced trading strategy. This comprehensive tutorial will guide you through the steps involved in contract trading on DigiFinex, empowering you to make informed decisions and potentially enhance your trading performance.

Step 1: Understanding Contract Trading

Contract trading involves entering into an agreement to buy or sell a specific amount of an underlying asset at a predefined price on a future date. In contract trading, you do not own the underlying asset; instead, you are speculating on its price movements.

DigiFinex offers perpetual contracts, which are unique in the sense that they do not have a fixed expiration date. This allows traders to hold their positions indefinitely until they choose to close them.

Step 2: Choosing the Right Contract

DigiFinex offers a variety of contract types, each with different underlying assets and trading terms. The available contracts include:

• BTCUSDT: Bitcoin futures contract
• ETHUSDT: Ethereum futures contract
• XRPUSDT: Ripple futures contract
• DOGEUSDT: Dogecoin futures contract
• SHIBUSDT: Shiba Inu futures contract

Consider your trading goals and risk tolerance when selecting a contract. Factors to consider include the contract's underlying asset, trading volume, liquidity, and market volatility.

Step 3: Opening a Contract Trading Account

To start contract trading on DigiFinex, you must first create an account. The registration process is straightforward and requires providing basic personal information. Once your account is verified, you can fund your account by depositing cryptocurrency or fiat currency.

Step 4: Placing an Order

To place an order on DigiFinex, follow these steps:

• Navigate to the "Contract Trading" section of the website.
• Select the desired contract type.
• Choose between a "Buy" or "Sell" order.
• Specify the order quantity and leverage (if applicable).
• Review the order details and click the "Place Order" button.

Step 5: Monitoring Your Position

Once you place an order, it will be executed automatically by the exchange. You can monitor your position in real-time by navigating to the "Open Positions" tab. This section displays the current price of the contract