How to operate DigiFinex perpetual contract

DigiFinex perpetual contracts offer a unique trading experience for advanced traders seeking to capitalize on the volatility of cryptocurrencies, enabling them to speculate on future price movements and use advanced trading tools like ladder trading and trailing stop orders.

Nov 23, 2024 at 05:22 pm

How to Operate DigiFinex Perpetual Contracts

DigiFinex perpetual contracts offer a unique trading experience for advanced traders seeking to capitalize on the volatility of cryptocurrencies. This comprehensive guide will provide a step-by-step explanation of how to operate DigiFinex perpetual contracts, covering everything from account creation to advanced order types and risk management strategies.

Step 1: Create a DigiFinex Account

• Visit the DigiFinex website and click on "Sign Up" in the top right corner.
• Enter your email address, create a strong password, and agree to the terms of service.
• Complete the registration process by verifying your email address and passing KYC/AML verification.

Step 2: Fund Your Account

• DigiFinex supports deposits in a wide range of cryptocurrencies.
• Log in to your DigiFinex account and go to the "Deposit" page.
• Select the desired cryptocurrency and generate a deposit address.
• Transfer funds to the provided address from your external wallet or exchange.

Step 3: Understand Perpetual Contracts

• Perpetual contracts are financial derivatives that emulate the underlying price of an asset without an expiration date.
• DigiFinex offers perpetual contracts on various cryptocurrencies, including BTC, ETH, and LTC.
• Traders can speculate on the future price movements of the underlying asset by going long (betting on a price increase) or short (betting on a price decrease).

Step 4: Choose a Trading Pair

• Navigate to the "Futures" section of the DigiFinex website.
• Select the desired trading pair from the available options.
• For example, if you want to trade Bitcoin perpetual contracts, choose "BTCUSDT Perpetual."

Step 5: Place an Order

• There are three main order types available on DigiFinex:

  • Limit Order: Set a specific price at which you want to enter or exit a trade.
  • Market Order: Execution at the current market price.
  • Conditional Order: Trigger a trade when certain conditions are met.
• Choose the order type, enter the desired price and quantity, and click "Buy/Long" to go long or "Sell/Short" to go short.

Step 6: Manage Risk

• Perpetual contracts involve high leverage, which amplifies both potential profits and losses.
• Always use stop-loss and take-profit orders to limit your potential losses.
• Monitor your risk-to-reward ratio and adjust your positions accordingly.

Step 7: Close a Position

• To close a position, place an opposite trade of the same size.
• For example, if you are in a long position, you would place a sell/short order of the same quantity to close it.
• Alternatively, you can also use the "Close Position" button in the open orders tab.

Step 8: Advanced Features

• Ladder Trading: Execute a series of orders at different prices to spread your risk and improve execution quality.
• Trailing Stop: Move your stop-loss order dynamically as the price moves in your favor, locking in profits.
• Cross Margin: Use your entire account balance as margin for all your perpetual contracts, increasing potential returns but also amplifying risks.

Conclusion

Operating DigiFinex perpetual contracts requires a deep understanding of the concept, proper risk management, and the ability to utilize advanced trading features. By following these steps and continuously refining your trading skills, you can navigate the dynamic and potentially lucrative world of perpetual contracts on DigiFinex.