Market Cap: $2.7228T -1.140%
Volume(24h): $68.9459B 49.940%
Fear & Greed Index:

24 - Extreme Fear

  • Market Cap: $2.7228T -1.140%
  • Volume(24h): $68.9459B 49.940%
  • Fear & Greed Index:
  • Market Cap: $2.7228T -1.140%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top Cryptospedia

Select Language

Select Language

Select Currency

Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos

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.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Related knowledge

What is the difference between the mark price and the latest price on Binance Futures?

What is the difference between the mark price and the latest price on Binance Futures?

Mar 17,2025 at 02:36pm

Key Points:Mark Price: A fair price calculated using multiple exchanges' prices, minimizing manipulation. It's crucial for funding rates and liquidation calculations.Latest Price: The most recent trade price on Binance Futures. Subject to volatility and potential manipulation.Discrepancies: Differences arise due to market depth, order book imbalances, a...

What is the difference between limit orders and market orders on Binance Futures?

What is the difference between limit orders and market orders on Binance Futures?

Mar 17,2025 at 04:10pm

Key Points:Limit Orders: Specify the price you're willing to buy or sell at. Execution is not guaranteed, but you control the price.Market Orders: Buy or sell at the best available price immediately. Execution is guaranteed, but the price may be less favorable than desired.Binance Futures Context: Both order types are crucial for managing risk and execu...

How to operate cross-product arbitrage of Bitcoin contracts?

How to operate cross-product arbitrage of Bitcoin contracts?

Mar 17,2025 at 01:00pm

Key Points:Understanding Bitcoin contract arbitrage relies on exploiting price discrepancies across different exchanges.Successful arbitrage requires speed, low latency connections, and sophisticated trading algorithms.Risk management is crucial, as market volatility and slippage can negate profits.Fees and slippage significantly impact profitability. C...

How is the funding rate of Bitcoin contracts calculated?

How is the funding rate of Bitcoin contracts calculated?

Mar 17,2025 at 10:30am

Key Points:Bitcoin perpetual contracts utilize funding rates to align the price of the contract with the spot price of Bitcoin.The funding rate is calculated based on the difference between the perpetual contract price and the spot price, and the demand for long or short positions.A positive funding rate means long positions pay short positions, and vic...

How to avoid the risk of liquidation in Bitcoin contracts?

How to avoid the risk of liquidation in Bitcoin contracts?

Mar 17,2025 at 09:56am

Key Points:Understanding Margin and Leverage: The core of avoiding liquidation lies in responsible leverage use.Monitoring Market Volatility: Sudden price swings are the biggest liquidation threat. Constant vigilance is crucial.Position Sizing and Risk Management: Never risk more than you can afford to lose. Proper position sizing is paramount.Stop-Loss...

How to set the stop profit and stop loss for Bitcoin contracts?

How to set the stop profit and stop loss for Bitcoin contracts?

Mar 17,2025 at 04:15pm

Key Points:Understanding the volatility of Bitcoin and the importance of risk management in contract trading.Defining stop-loss and take-profit orders and their roles in mitigating losses and securing profits.Exploring various order types available for setting stop-loss and take-profit orders on Bitcoin contracts.Strategies for determining appropriate s...

What is the difference between the mark price and the latest price on Binance Futures?

What is the difference between the mark price and the latest price on Binance Futures?

Mar 17,2025 at 02:36pm

Key Points:Mark Price: A fair price calculated using multiple exchanges' prices, minimizing manipulation. It's crucial for funding rates and liquidation calculations.Latest Price: The most recent trade price on Binance Futures. Subject to volatility and potential manipulation.Discrepancies: Differences arise due to market depth, order book imbalances, a...

What is the difference between limit orders and market orders on Binance Futures?

What is the difference between limit orders and market orders on Binance Futures?

Mar 17,2025 at 04:10pm

Key Points:Limit Orders: Specify the price you're willing to buy or sell at. Execution is not guaranteed, but you control the price.Market Orders: Buy or sell at the best available price immediately. Execution is guaranteed, but the price may be less favorable than desired.Binance Futures Context: Both order types are crucial for managing risk and execu...

How to operate cross-product arbitrage of Bitcoin contracts?

How to operate cross-product arbitrage of Bitcoin contracts?

Mar 17,2025 at 01:00pm

Key Points:Understanding Bitcoin contract arbitrage relies on exploiting price discrepancies across different exchanges.Successful arbitrage requires speed, low latency connections, and sophisticated trading algorithms.Risk management is crucial, as market volatility and slippage can negate profits.Fees and slippage significantly impact profitability. C...

How is the funding rate of Bitcoin contracts calculated?

How is the funding rate of Bitcoin contracts calculated?

Mar 17,2025 at 10:30am

Key Points:Bitcoin perpetual contracts utilize funding rates to align the price of the contract with the spot price of Bitcoin.The funding rate is calculated based on the difference between the perpetual contract price and the spot price, and the demand for long or short positions.A positive funding rate means long positions pay short positions, and vic...

How to avoid the risk of liquidation in Bitcoin contracts?

How to avoid the risk of liquidation in Bitcoin contracts?

Mar 17,2025 at 09:56am

Key Points:Understanding Margin and Leverage: The core of avoiding liquidation lies in responsible leverage use.Monitoring Market Volatility: Sudden price swings are the biggest liquidation threat. Constant vigilance is crucial.Position Sizing and Risk Management: Never risk more than you can afford to lose. Proper position sizing is paramount.Stop-Loss...

How to set the stop profit and stop loss for Bitcoin contracts?

How to set the stop profit and stop loss for Bitcoin contracts?

Mar 17,2025 at 04:15pm

Key Points:Understanding the volatility of Bitcoin and the importance of risk management in contract trading.Defining stop-loss and take-profit orders and their roles in mitigating losses and securing profits.Exploring various order types available for setting stop-loss and take-profit orders on Bitcoin contracts.Strategies for determining appropriate s...

See all articles

User not found or password invalid

Your input is correct