How to use 20x leverage on DigiFinex

DigiFinex offers up to 20x leverage for margin trading on select cryptocurrencies, allowing traders to amplify potential profits or losses by borrowing funds.

Nov 26, 2024 at 07:10 pm

How to Use 20x Leverage on DigiFinex

Leverage trading is a strategy that allows traders to amplify their potential profits or losses by borrowing funds from a broker. On DigiFinex, traders can use up to 20x leverage on certain cryptocurrencies. This means that for every $1 of their own capital, they can trade with up to $20.

While leverage trading can be a powerful tool, it is also important to understand the risks involved. If the market moves against you, you could lose more money than you originally invested.

Before you start leverage trading, it is important to do your research and understand the risks involved. You should also make sure that you have a solid trading strategy and that you are comfortable with the amount of risk you are taking.

If you are new to leverage trading, it is best to start with a small amount of leverage. As you become more experienced, you can gradually increase the amount of leverage you use.

Step-by-Step Guide on How to Use 20x Leverage on DigiFinex

1. Open a DigiFinex account. If you do not already have a DigiFinex account, you will need to create one.
2. Fund your account. You can fund your account with a variety of cryptocurrencies, including Bitcoin, Ethereum, and USDT.
3. Navigate to the "Margin Trading" page. Once you have deposited funds into your account, you can navigate to the "Margin Trading" page.
4. Select the cryptocurrency you want to trade. On the "Margin Trading" page, you will need to select the cryptocurrency you want to trade.
5. Set your leverage. Once you have selected the cryptocurrency you want to trade, you will need to set your leverage. You can set your leverage to anywhere from 1x to 20x.
6. Place your order. Once you have set your leverage, you can place your order. You can place a market order, a limit order, or a stop order.
7. Monitor your position. Once you have placed your order, you will need to monitor your position. You can do this by clicking on the "My Positions" tab on the "Margin Trading" page.
8. Close your position. When you are ready to close your position, you can click on the "Close Position" button on the "My Positions" tab.

Risks of Leverage Trading

There are a number of risks associated with leverage trading, including:

• The potential for large losses. If the market moves against you, you could lose more money than you originally invested.
• Margin calls. If your losses exceed your margin balance, you may receive a margin call. A margin call is a demand from your broker to deposit more funds into your account. If you do not meet a margin call, your broker may liquidate your position.
• Liquidation. If your losses exceed your margin balance and you do not meet a margin call, your broker may liquidate your position. This means that your broker will sell your cryptocurrency to cover your losses.

Conclusion

Leverage trading can be a powerful tool for experienced traders, but it is important to understand the risks involved. If you are new to leverage trading, it is best to start with a small amount of leverage and gradually increase the amount of leverage you use as you become more experienced.