1) Margin trading: Margin trading (orleverage trading) is a method of trading where users deposit an amount of assets to a third party or exchange as the margin (initial capital), in exchange for a loan amount a few times their original amount, so that they can actualize more profit with smaller capital. Users must be aware, however, that as they leverage the margin, though they may gain more profit, they also bear higher risk of loss. Users are hence advised to fully understand the risks that come with margin trading before they proceed to trading.
2) Positions: Position is the act of buying or selling an asset in hopes to gain profit. Traders can buy positions in 2 directions - long and short. If they have believe that the asset price has potential to increase in the long run, they can choose to go long by buying the asset at a lower price and selling it when the price increases. On the contrary, if they predict that the asset price will fall, they can play it to their advantage by going short, meaning that they can sell the asset at a higher price and buy it back when it falls to a lower price. Both ways allow the traders to make a profit regardless of a rising or falling market.
DigiFinex users will be able to see relevant information about their trading pair on the DigiFinex “Exchange” page under the “Positions” tab, such as the direction, amount, P/L, and LIQ price.
1) Leverage: The act of multiplying the initial margin to make a larger investment with smaller amount. While this allows the users to yield more profit, they also face a higher risk of loss.
2) Maximum loan: Refers to the maximum amount a user can loan for each trading pair. DigiFinex will calculate the user’s current maximum loan based on criteria such as the user’s maximum loan for leverage and the platform’s risk control guidelines.
3) How to calculatethe maximum amount that a user can loan for leverage:
Maximum loan for leverage = Total value of assets in the margin account * leverage amount
If the users’ assets used for margin trading is equivalent to 1,000 USDT, and if the platform can provide a 3X leverage:
Then the user can use a 1,000 * 3 = 3,000USDT equivalent of tokens for trade
Note: The margin that the user deposited to the platform will be frozen and cannot be used to trade.
1) Margin: The margin is like a type of guarantee or collateral that traders deposit to the exchange platform to maintain a position. By depositing margin to the platform, it proves that the trader has the capacity to bear risks. The margin can be in cryptocurrencies such as USDT, BTC, and
2) Total margin: Total value of the assets in a user’s margin account.
3) Frozen margin:
Frozen margin = Total amount a user holds in the position ÷ leverage
Assuming that the user has 3,000USDT in his position and applied for a 3X leverage, then (3,000USDT ÷ 3 = 1,000USDT) of tokens will be frozen.
Note: If there are multiple currency types in the user’s account, then by system default, the currencies will be frozen in the following order - USDT, BTC, and ETH.
4) Usable margin: Users can use it to trade or transfer to other accounts.
The maximum secured amount that a user can use for margin trading = Usable margin * leverage amount
Usable margin = Total margin - Frozen margin
5) Margin ratio: The ratio of frozen margin to total margin. Users with a lower margin rate and higher leverage may earn higher profits but bear higher risks. Users with a higher margin rate and lower leverage may earn lower profits but bears lower risks.
Margin Rate = (Total Margin ± Profit/Loss) ÷ Frozen margin
1) Profit/Loss (P/L): The profitor loss is calculated based on the latest market strike price against the user’s strike
When users hold a long position, they will gain profits if the market price is higher than the user’s average price, and incur losses if the market price is lower than the user's average price.
Conversely, when the user holds a short position, profits will be greater when the market price is lower than the user’s average price, and losses will be greater when the market price is higher than the user’s average price.
2) Floating profit: Accumulated profits a user gain when they hold an open position.
3) Floating loss: Accumulated losses a user incur when they hold an open position.
4) How to calculate floating P/L rate: Floating P/L rate = P/L ÷ frozen margin
5.Closed position & Auto-Liquidation (LIQ) Price:
1) Closed position: A position is closed when the trade direction is reversed. If the trader opened the position by going long, then selling the assets at a higher price will close the position. Conversely, if the trader opened the position by going short, then buying the assets back at a lower price will close the position.
If the number of assets sold or bought in reverse is equal to the number of assets held in the position, then it is a fully closed position. If the reversed quantity is less than the position quantity, it is a partially closed position. When the reversed quantity is greater than the position quantity, it will be an exceeded closed position.
2) Auto-Liquidation(LIQ) Line: When the margin rate is lower than 30%, the positions will be automatically liquidated by the system till the margin rate increases to above 30%.
3) Auto-Liquidation(LIQ) Price: The price that caused the margin rate to drop lower than 30%.
4) Liquidation Warning: When the margin rate falls below 60%, you will receive a liquidation warning notice via the website notification system and to your email, to remind you to increase the margin amount.
6.Interest calculation & token return:
1) Rules for interest calculation: DigiFinex will only collect interest once per day at 10:00 (GMT+8). If the user does not have any opened positions during that time, orif they closed the positions beforehand, no interest will be collected.
2) Interest rate: 0.05%
Interest rate calculation will restart from week 1 when the user has completely closed the position for a trading pair.
3) Loaning & returning of assets:Users need not apply for additional loans if they do margin trading on DigiFinex, as the system will loan and return assets automatically during trading or closed position respectively.
Assuming that the user wishes to trade with BTC/USDT, and decided to go long for 1 BTC with 4,000 USDT, DigiFinex will automatically loan 4,000 USDT to the user. When the user closes the position (i.e. after selling the 1BTC), the system will retrieve the 4,000USDT automatically.
How to ask for help：
Tips, beware of false customer service:
1). Do not provide account password, SMS, Google verification code, WeChat and bank card password to anyone including DigiFinex Exchange Customer Service
2). Please look for the official website: Digifinex.vip & DigiFinex.com
3). Don't click on the unofficial link, beware of computer poisoning information leaks.
4). The DigiFinex exchange staff will not ask you to transfer the payment.
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