How to use leverage on DigiFinex

How to Use Leverage on DigiFinex

Leverage trading is a powerful tool that can be used to increase your profits on DigiFinex. However, it's important to understand the risks involved before you start using leverage.

What is Leverage?

Leverage is essentially a loan that you can take out from DigiFinex to increase the amount of money you have available to trade. For example, if you have 1,000 USDT in your account and you use 10x leverage, you will be able to trade as if you had 10,000 USDT.

How to Use Leverage on DigiFinex

To use leverage on DigiFinex, you first need to choose the asset you want to trade and the amount of leverage you want to use. You can choose leverage levels ranging from 2x to 100x.

Once you have selected your asset and leverage level, you can open a position. To do this, click on the "New Order" button and select the "Margin" tab. Then, enter the amount of the asset you want to buy or sell and the desired leverage level.

Risks of Using Leverage

Leverage is a double-edged sword. It can increase your profits, but it can also lead to significant losses. The higher the leverage you use, the greater the risk of losing money.

There are two main risks to consider when using leverage:

• Liquidation: If the price of the asset you are trading moves against you, you may be liquidated. This means that you will lose all of the money in your account.
• Margin calls: If your account balance falls below a certain level, DigiFinex may issue you a margin call. This means that you will need to deposit more money into your account to cover your losses.

Tips for Using Leverage Safely

If you want to use leverage safely, it's important to follow these tips:

• Only use leverage if you understand the risks involved.
• Start with a small amount of leverage and gradually increase it as you gain experience.
• Never invest more money than you can afford to lose.
• Have a plan for how you will manage your risk.
• Monitor your positions closely and be prepared to close them out if the market moves against you.

Conclusion

Leverage can be a powerful tool for increasing your profits, but it's important to use it safely. By following the tips above, you can reduce your risk and increase your chances of success.