How to lock position on DigiFinex contract

Locking position on DigiFinex Contract empowers traders to automate profit-taking or loss-cutting by setting predetermined target profit or stop-loss prices for open positions.

Nov 28, 2024 at 03:13 am

How to Lock Position on DigiFinex Contract

Locking position on DigiFinex contract refers to setting a target profit or stop-loss price for an open position, allowing traders to secure profits or minimize losses while away from the platform. This guide provides a detailed explanation of the process, including the necessary steps and considerations.

Steps to Lock Position on DigiFinex Contract:

1. Understand the Concept of Lock Position:

• Lock position is an advanced trading strategy that enables traders to secure profits or prevent further losses in volatile market conditions.
• It involves pre-setting target profit or stop-loss prices, allowing traders to automate the profit-taking or loss-cutting process.

2. Identify Suitable Trading Pairs:

• DigiFinex offers lock position feature for most of its perpetual contract trading pairs.
• Choose a trading pair with strong liquidity and volume to ensure smooth execution and minimal slippage.

3. Calculate Appropriate Leverage:

• Leverage plays a crucial role in multiplying profits as well as losses.
• Determine an appropriate leverage level based on your risk tolerance and market conditions.

4. Place an Order:

• Navigate to the "Contracts" section and select the desired trading pair.
• Fill in the order form with details such as order type, order size, and target price.

5. Set Target Profit and Stop-Loss Price:

• After placing the order, navigate to the "My Orders" section.
• Select the open position and click on the "Lock Position" option.
• Specify the target profit or stop-loss price at which the position will automatically close.

6. Monitor Position and Adjust if Needed:

• Keep track of the open position in the "My Orders" section.
• Make necessary adjustments to the target profit or stop-loss price based on market conditions.

7. Closing the Position:

• The position will automatically close once the target profit or stop-loss price is reached.
• Alternatively, traders can manually close the position by clicking on the "Close Position" button.

Considerations for Locking Position on DigiFinex Contract:

• Market Volatility: Lock position is suitable for volatile market conditions, as it allows traders to secure profits or limit losses.
• Liquidity: Choose trading pairs with sufficient liquidity to ensure smooth execution and minimal slippage.
• Leverage: Leverage can magnify profits and losses, so use it prudently based on your risk tolerance.
• Slippage: Slippage can occur when the market price moves away from the target profit or stop-loss price, potentially affecting profitability.
• Withdrawal: Lock position does not restrict traders from withdrawing funds from their accounts. However, closing the position is necessary before withdrawing the funds used as margin.