DigiFinex app leverage trading tutorial

DigiFinex App Leverage Trading Tutorial: A Comprehensive GuideIntroduction

Leverage trading in the cryptocurrency market involves borrowing funds from a broker to enhance your position and amplify potential profits. It can be a double-edged sword, providing increased earning potential but also magnifying losses. DigiFinex, a renowned cryptocurrency exchange, offers a user-friendly mobile application that empowers traders to engage in leverage trading seamlessly. This comprehensive tutorial will guide you through the process of leverage trading on the DigiFinex app, ensuring you navigate this advanced trading strategy with confidence.

Prerequisites:

• Create a DigiFinex account and complete account verification.
• Fund your account with supported cryptocurrencies or stablecoins.
• Familiarize yourself with the principles of leverage trading, including potential risks and rewards.

Step 1: Activating Leverage Trading

1. Download the DigiFinex app from the App Store or Google Play.
2. Sign in to your DigiFinex account.
3. Navigate to the "Markets" tab.
4. Select your preferred trading pair, e.g., BTC/USDT.
5. Tap the "Leverage" button at the bottom of the screen.
6. Toggle the "Enable Leverage" switch to "ON."

Step 2: Configuring Leverage and Margin

1. Determine the leverage ratio you wish to apply to your trade. DigiFinex offers various options ranging from 2x to 100x. A higher ratio amplifies potential gains but also increases risk.
2. Adjust the margin, expressed as a percentage, to allocate a specific amount of your account balance as collateral for the leverage position.

Step 3: Placing a Leverage Trade

1. Enter the trading amount in the designated field.
2. Select your preferred order type, such as Limit or Market order.
3. Preview the trade details, including the leveraged position, margin, and potential profit/loss.
4. Confirm the trade by tapping the "Buy Long" or "Sell Short" button.

Step 4: Monitoring and Managing Your Leverage Position

1. Track your open leverage positions under the "Positions" section of the app.
2. Monitor the price movement of the underlying asset and adjust your position as needed by closing the trade or adding more margin.
3. Be aware of the margin call threshold, which triggers a liquidation of your position if the value of your account falls below a certain level.

Step 5: Closing Your Leverage Trade

1. Navigate to the "Positions" section.
2. Select the specific leverage position you wish to close.
3. Tap the "Close" button and confirm the transaction.

Additional Tips for Leverage Trading

• Start with low leverage ratios until you gain experience.
• Manage your risk by setting stop-loss and take-profit orders.
• Monitor the market closely and adjust your position accordingly.
• Avoid overleveraging, as it can lead to substantial losses.
• Consider using a trailing stop loss to protect your profits in volatile market conditions.