How to play DigiFinex BTC contract

For a detailed understanding of DigiFinex BTC contract trading, consider registering on the DigiFinex website and exploring the comprehensive guide provided on our platform.

Nov 25, 2024 at 02:04 pm

How to Play DigiFinex BTC Contract

Introduction:

DigiFinex BTC contract is a derivative product that allows traders to speculate on the price of Bitcoin (BTC) without actually owning the underlying asset. It offers leverage, enabling traders to amplify their profits or losses. This guide will provide a comprehensive walkthrough of how to play DigiFinex BTC contract.

Step 1: Registration and Account Setup

• Visit the DigiFinex website (https://www.digifinex.com/) and click on "Register."
• Provide your email address, create a password, and complete the CAPTCHA.
• Verify your email address by clicking on the link sent to your inbox.
• Deposit funds into your account to start trading.

Step 2: Understanding the DigiFinex BTC Contract

• Contract Unit: Each DigiFinex BTC contract represents 0.01 BTC.
• Trading Size: Contracts can be traded in multiples of 1 unit.
• Margin Requirement: Traders need to maintain a minimum margin in their accounts to trade contracts.
• Leverage: DigiFinex offers leverage up to 125x, depending on the market conditions.
• Order Types: Traders can place market orders, limit orders, and stop orders.
• Liquidation Price: If the account's equity falls below the liquidation price, the position will be forcibly closed.

Step 3: Trading the DigiFinex BTC Contract

• Navigate to the "Contract" tab and select "BTC/USDT."
• Choose the contract expiry date you want to trade.
• Decide on the order type you wish to place.
• Enter the trading size (in contract units).
• Specify the entry price or price level for limit and stop orders.
• Click on "Buy" or "Sell" to execute the trade.

Step 4: Managing Risk

• Monitor your position regularly to track unrealized profits and losses.
• Use stop-loss or take-profit orders to limit potential losses or secure profits.
• Adjust your leverage level prudently based on your risk tolerance and market volatility.
• Avoid overtrading and maintain sufficient funds in your account to meet margin requirements.

Step 5: Settlement and Execution

• Contract settlement occurs at the specified expiry date.
• If the position is profitable, the profits are credited to the trader's account.
• If the position is loss-making, the loss is deducted from the trader's account.
• Traders can also roll over their positions to the next contract period if they wish to maintain exposure.

Understanding Key Concepts:

• Leverage: Magnifies profits but also amplifies losses. Use it cautiously.
• Liquidation Price: The point at which a position is automatically closed due to insufficient account equity.
• Stop-Loss Order: A pending order that triggers a sale (or buy) if the price falls (or rises) to a specified level.
• Take-Profit Order: A pending order that triggers a sale (or buy) if the price rises (or falls) to a specified level.
• Rollover: Extending the expiry date of a contract position to the next contract period.