day trading futures

Day Trading Futures – All You Need to Know

Digitex Futures
Trading
• Christina Comben
March 1, 2020

With the Digitex Futures mainnet just around the corner, commission-free futures trading is closer to becoming a reality. So, if you haven’t already, it’s time that you decided on the right trading strategy for you. Many people opt for day trading futures as it can yield a solid and sustainable living. However, it’s a full-time job requiring plenty of discipline and market study. Let’s take a closer look at what day trading futures involves and whether it’s right for you.

Day Trading Futures

They may have written a book about it, but there really is no such thing as trading futures for dummies. Futures trading is anything but easy. Many traders have backgrounds in economics, math, accounting, or a similar form of higher education. However, that doesn’t mean it’s essential. Far from it, in fact. 

At Digitex Futures, we believe in lowering the barrier to futures trading to make all types of trading easier. There are plenty of trading strategies to make a living trading futures, however, day trading futures is one of the most popular. It involves the buying and selling of futures contracts, as the name suggests, within the same day.

This means that day traders don’t hold their positions open overnight. However, in the cryptocurrency market futures investing and trading is different from traditional futures markets like stocks and commodities. Cryptocurrencies never sleep. This means that day traders need to study the market and check out when the trading volume is typically higher for their chosen tokens or coins.

If you’re a day trader in Europe but there’s more price action when the west coast of the U.S. is waking up, you may find it more lucrative to make a living trading futures during your night-time hours. If that’s the case, you’ll need to learn how to use trading bots to work for you and be sure to have the correct stop and limit orders in place to close your position at your acceptable price to insulate against losses or maximize gains.

Manual vs Bot Futures Trading

Not every trader likes to use bots to enhance their trading strategy. That’s because bots still need continued monitoring, and it may take a while to master using them to ensure you don’t get poor results. While bots give you more flexibility about how and when you trade and minimalize human emotions at the same time, mechanical failures can still happen.

If you prefer to trade manually and make profits from even the smallest of fluctuations in price, your trades will vary in duration. They can be very short-term (known as scalping) at just seconds or minutes at a time, or last for several hours. Day traders need to build up experience, knowledge, and discipline to be successful and make a living trading futures.

Advantages of Day Trading Futures

Take a bird’s eye view of the cryptocurrency market and futures investing and trading can seem incredibly daunting. That’s because this market is typically more volatile than other assets. There is the potential to make enormous gains, but also major losses as well.

Just as there’s no such thing as trading futures for dummies, there’s nothing simple about making the right calls in the cryptocurrency market. All the analysis may tell you the trend is going down, but you can still get caught out on a short position if the market swings up unexpectedly (and vice versa).

That said, there are plenty of advantages to day trading futures. One of which is that, once you master the technique, you can make a living trading futures without having to work for anyone else. Moreover, if you like to trade manually, once your positions are closed for the day, you’re free to head out for dinner, relax, and take a break from the markets without worrying about open positions and the markets going the wrong way.

Day trading is usually less risky than position trading or trend trading since day traders don’t have the same lengthy open positions and aren’t exposed to as much price volatility. Traders entering long-duration short or long positions can expose themselves to extreme risk which can lead to them having their positions liquidated.

Another plus from day trading is that it keeps you active! Day traders often make multiple trades in any given day, so there’s never a dull moment! If you want to get into day trading, you’ll learn the ins and outs of it much faster and gain knowledge quicker because you’ll be placing so many more trades. 

Disadvantages of Day Trading Futures

Day trading futures is a full-time job, so you can’t expect to be successful at day trading if you have another job already or other time commitments. You also need to have a specific type of personality to be good at it. This includes strong discipline and the ability to control your emotions. There will always be the temptation to make marginal trades and to overtrade when you’re in a market of futures investing and trading crypto assets.

Another huge drawback when it comes to day trading (especially very short-term trading like scalping) is that commission fees can add up very quickly and eat into your profits. What may have been a winning day can often end up with you breaking even–or even making a loss. This means that many people who want to make a living day trading futures are unable to right now.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Day Trading Futures on the Digitex Exchange

Those of you familiar with our CEO Adam Todd’s story will know that, as a pit trader in London, commission fees were the bane of his life. He traded futures as a short-term scalper, looking to build up small profits over time from very fast, aggressive trading. He often found that profitable days were ruined by hefty commissions.

Adam dreamed of being able to create a trading environment in which commission fees were no longer an issue; hence the birth of Digitex Futures. We’ll be taking the cryptocurrency futures market by storm upon launch by removing the commissions and allowing short-term active traders to finally make a living trading futures sustainably.

By using a very different model from other exchanges in the market of futures investing and trading, all traders will trade on Digitex using our native DGTX token. This increases the demand for DGTX and has a direct correlation on its value. 

Instead of charging commissions on trades, our revenue model of token issuance means that we will fund the operational costs of running an exchange in a different way–in three stages.

The first stage of funding was our sell-out ICO in 2018, that closed in just 17 minutes raising around $5.3 million of ETH. The second stage is our ongoing token sale, the Digitex Treasury, which will run for two and a half years. We locked up 10% of our initial supply of DGTX (100 million) and assigned it to a smart contract to release 10 million tokens every quarter during this time.

The third stage of funding is token minting. This will be decided upon by the Digitex trading community and voted on from 2022 onwards.

Make a Living Trading Futures

While many traders point out that token minting will have an inflationary effect on the token price, we’re confident that it’s a better way of funding the exchange than charging commission fees. Moreover, the potential slight drop in token price will be offset by new traders attracted to liquid markets with tight bid/ask spreads. 

For the first time in history, short-term scalpers and day traders will be able to make a living trading futures without worrying about losing profits to commissions. They can build up small winnings over time.

Moreover, with our market makers actually programmed to lose money, traders of all stripes will be attracted to the high liquidity of the exchange. They can target these market maker losses and create strategies aimed at them.

Finally, retail traders can trade crypto futures and actually make money on an exchange whose interests are aligned with its traders. We want to see more and more successful traders in our exchange. We won’t trade against them for profit like BitMEX. We won’t siphon liquidity out of the pool in the form of commissions, and we won’t be incentivized to liquidate positions to grow our insurance fund.

Wrapping It Up

The futures industry is on a tear right now. Global contracts traded smashed all records last year. BitMEX and CME both hit new all-time highs, even Binance and Bakkt came into the space. However, every one of our competitors uses the same fee-charging model that doesn’t allow for short-term scalping.

Digitex will be a breath of fresh air for traders both novice and experienced because we will allow for all types of trading on a highly liquid exchange. We’re opening up this industry and allowing new types of people to come in. Get ready for zero-fee trading, we’re on the verge of starting a revolution.

Do you want to stock up on DGTX tokens ahead of the mainnet launch on April 27? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX
March 1, 2020
Digitex Futures
Trading

Day Trading Futures – All You Need to Know

Christina Comben
day trading futures

With the Digitex Futures mainnet just around the corner, commission-free futures trading is closer to becoming a reality. So, if you haven’t already, it’s time that you decided on the right trading strategy for you. Many people opt for day trading futures as it can yield a solid and sustainable living. However, it’s a full-time job requiring plenty of discipline and market study. Let’s take a closer look at what day trading futures involves and whether it’s right for you.

Day Trading Futures

They may have written a book about it, but there really is no such thing as trading futures for dummies. Futures trading is anything but easy. Many traders have backgrounds in economics, math, accounting, or a similar form of higher education. However, that doesn’t mean it’s essential. Far from it, in fact. 

At Digitex Futures, we believe in lowering the barrier to futures trading to make all types of trading easier. There are plenty of trading strategies to make a living trading futures, however, day trading futures is one of the most popular. It involves the buying and selling of futures contracts, as the name suggests, within the same day.

This means that day traders don’t hold their positions open overnight. However, in the cryptocurrency market futures investing and trading is different from traditional futures markets like stocks and commodities. Cryptocurrencies never sleep. This means that day traders need to study the market and check out when the trading volume is typically higher for their chosen tokens or coins.

If you’re a day trader in Europe but there’s more price action when the west coast of the U.S. is waking up, you may find it more lucrative to make a living trading futures during your night-time hours. If that’s the case, you’ll need to learn how to use trading bots to work for you and be sure to have the correct stop and limit orders in place to close your position at your acceptable price to insulate against losses or maximize gains.

Manual vs Bot Futures Trading

Not every trader likes to use bots to enhance their trading strategy. That’s because bots still need continued monitoring, and it may take a while to master using them to ensure you don’t get poor results. While bots give you more flexibility about how and when you trade and minimalize human emotions at the same time, mechanical failures can still happen.

If you prefer to trade manually and make profits from even the smallest of fluctuations in price, your trades will vary in duration. They can be very short-term (known as scalping) at just seconds or minutes at a time, or last for several hours. Day traders need to build up experience, knowledge, and discipline to be successful and make a living trading futures.

Advantages of Day Trading Futures

Take a bird’s eye view of the cryptocurrency market and futures investing and trading can seem incredibly daunting. That’s because this market is typically more volatile than other assets. There is the potential to make enormous gains, but also major losses as well.

Just as there’s no such thing as trading futures for dummies, there’s nothing simple about making the right calls in the cryptocurrency market. All the analysis may tell you the trend is going down, but you can still get caught out on a short position if the market swings up unexpectedly (and vice versa).

That said, there are plenty of advantages to day trading futures. One of which is that, once you master the technique, you can make a living trading futures without having to work for anyone else. Moreover, if you like to trade manually, once your positions are closed for the day, you’re free to head out for dinner, relax, and take a break from the markets without worrying about open positions and the markets going the wrong way.

Day trading is usually less risky than position trading or trend trading since day traders don’t have the same lengthy open positions and aren’t exposed to as much price volatility. Traders entering long-duration short or long positions can expose themselves to extreme risk which can lead to them having their positions liquidated.

Another plus from day trading is that it keeps you active! Day traders often make multiple trades in any given day, so there’s never a dull moment! If you want to get into day trading, you’ll learn the ins and outs of it much faster and gain knowledge quicker because you’ll be placing so many more trades. 

Disadvantages of Day Trading Futures

Day trading futures is a full-time job, so you can’t expect to be successful at day trading if you have another job already or other time commitments. You also need to have a specific type of personality to be good at it. This includes strong discipline and the ability to control your emotions. There will always be the temptation to make marginal trades and to overtrade when you’re in a market of futures investing and trading crypto assets.

Another huge drawback when it comes to day trading (especially very short-term trading like scalping) is that commission fees can add up very quickly and eat into your profits. What may have been a winning day can often end up with you breaking even–or even making a loss. This means that many people who want to make a living day trading futures are unable to right now.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Day Trading Futures on the Digitex Exchange

Those of you familiar with our CEO Adam Todd’s story will know that, as a pit trader in London, commission fees were the bane of his life. He traded futures as a short-term scalper, looking to build up small profits over time from very fast, aggressive trading. He often found that profitable days were ruined by hefty commissions.

Adam dreamed of being able to create a trading environment in which commission fees were no longer an issue; hence the birth of Digitex Futures. We’ll be taking the cryptocurrency futures market by storm upon launch by removing the commissions and allowing short-term active traders to finally make a living trading futures sustainably.

By using a very different model from other exchanges in the market of futures investing and trading, all traders will trade on Digitex using our native DGTX token. This increases the demand for DGTX and has a direct correlation on its value. 

Instead of charging commissions on trades, our revenue model of token issuance means that we will fund the operational costs of running an exchange in a different way–in three stages.

The first stage of funding was our sell-out ICO in 2018, that closed in just 17 minutes raising around $5.3 million of ETH. The second stage is our ongoing token sale, the Digitex Treasury, which will run for two and a half years. We locked up 10% of our initial supply of DGTX (100 million) and assigned it to a smart contract to release 10 million tokens every quarter during this time.

The third stage of funding is token minting. This will be decided upon by the Digitex trading community and voted on from 2022 onwards.

Make a Living Trading Futures

While many traders point out that token minting will have an inflationary effect on the token price, we’re confident that it’s a better way of funding the exchange than charging commission fees. Moreover, the potential slight drop in token price will be offset by new traders attracted to liquid markets with tight bid/ask spreads. 

For the first time in history, short-term scalpers and day traders will be able to make a living trading futures without worrying about losing profits to commissions. They can build up small winnings over time.

Moreover, with our market makers actually programmed to lose money, traders of all stripes will be attracted to the high liquidity of the exchange. They can target these market maker losses and create strategies aimed at them.

Finally, retail traders can trade crypto futures and actually make money on an exchange whose interests are aligned with its traders. We want to see more and more successful traders in our exchange. We won’t trade against them for profit like BitMEX. We won’t siphon liquidity out of the pool in the form of commissions, and we won’t be incentivized to liquidate positions to grow our insurance fund.

Wrapping It Up

The futures industry is on a tear right now. Global contracts traded smashed all records last year. BitMEX and CME both hit new all-time highs, even Binance and Bakkt came into the space. However, every one of our competitors uses the same fee-charging model that doesn’t allow for short-term scalping.

Digitex will be a breath of fresh air for traders both novice and experienced because we will allow for all types of trading on a highly liquid exchange. We’re opening up this industry and allowing new types of people to come in. Get ready for zero-fee trading, we’re on the verge of starting a revolution.

Do you want to stock up on DGTX tokens ahead of the mainnet launch on April 27? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX

Latest News

Wondering How To Buy Futures? Check Out This Quick Guide 1

Wondering How To Buy Futures? Check Out This Quick Guide

Digitex Futures
Trading
• Christina Comben
September 2, 2019

As we announced the launch of our public testnet and inch closer to opening the gates, things are starting to get real at last! You may find yourself wondering how to buy futures or indeed, what futures really are. In this article, we explain the basic concepts, how to buy futures, the types of contracts, and all you need to know to get into stock futures investing.

About Futures 

For a more in-depth overview of futures and futures trading, check out our how-to guide here. However, the basic premise is this: Think of futures contracts as agreements between two parties to trade an asset (in this case Bitcoin) for an agreed-upon price in the future. 
Trading futures has many benefits and started out as a way of allowing large companies, farmers, oil producers, etc. to hedge their commodities’ value against price fluctuations. Say an oil producer believes that the price per barrel will drop significantly in the next six months. He can enter a futures contract to sell at today’s price in six months to secure his profit. Of course, he loses out if the price rises. Trading futures is always a gamble, even more so in the cryptocurrency space.
There are many different types of futures contracts, including physically settled and cash-settled, as well as daily and monthly settled and perpetual swaps. Until Bakkt makes its entrance in September of this year with the first physically settled Bitcoin Futures market, all futures in the crypto space are cash-settled. This means that the traders pay each other the difference instead of physically delivering the underlying asset (Bitcoin). 
While some traders are looking to hedge on price, most modern futures traders are speculators looking to trade on price fluctuations and make cash profits, rather than taking custody of the underlying asset (i.e. barrels of oil, bars of gold, or even bitcoins). This would be a physically-settled contract and is more applicable to institutional space, agricultural or airline industries, for example. 

Perpetual Swaps

What are perpetual swap contracts? Perpetual swaps have no expiration date, unlike daily or monthly settled futures contracts. This makes them easier to understand for retail traders and they will be the main focus of the Digitex Futures exchange. As Adam stated in the AMA about the testnet:
“With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume.”

Futures Markets

The futures market globally is now enormous and growing all the time according to the Futures Industry Association, with futures traded against stocks, Forex, cryptocurrencies, indices, bonds, gold, and more.
If you were asking questions like, what are stock futures, what is day trading futures, and how to buy futures, it helps to have an overview of the different types of markets first–as well as the tools that good futures traders use to magnify their profits.
You can buy futures contracts through a traditional broker or online from an abundance of sites that make trading simpler and easier, cut out intermediaries and lower costs. On the Digitex Futures exchange, you’ll be able to buy cryptocurrency futures with zero commissions on all trades–a first for both the crypto and the futures industry.
Futures traders often use tools like margin and leverage to increase their profit sizes. Borrowing funds from an exchange to take a bigger position can be risky and highly leveraged traders can get blown out in volatile markets. However, leverage does give skilled traders the chance to make a lot of money fast and greatly magnify their winnings. This is why 100x leverage has become so popular in the cryptocurrency markets.

How to Buy Futures on the Digitex Exchange

On the Digitex exchange, you can buy futures using DGTX only. This means that you’ll need to know where to buy ether, first of all, to purchase DGTX and then all your profits and losses will be denominated in DGTX.
As Adam highlighted in his AMA, you will be buying a perpetual swap contract, which will be a dollar’s worth of DGTX tokens and has no expiration date. We are still finalizing the futures contract specifications, however, they will be essentially the same as other major futures exchanges such as BitMEX and Bybit to make it easier for their traders to switch over to Digitex. We want to make it as simple as possible to create winning traders and to allow them to trade successfully. 
Skilled traders are used to trading futures for profit. It takes time and discipline, but even you’re just starting out, earning some extra income from day trading futures is certainly within your reach, especially on a platform that charges no commissions and has no mechanical edge working against you.

September 2, 2019
Digitex Futures
Trading

Wondering How To Buy Futures? Check Out This Quick Guide

Christina Comben
Wondering How To Buy Futures? Check Out This Quick Guide 2

As we announced the launch of our public testnet and inch closer to opening the gates, things are starting to get real at last! You may find yourself wondering how to buy futures or indeed, what futures really are. In this article, we explain the basic concepts, how to buy futures, the types of contracts, and all you need to know to get into stock futures investing.

About Futures 

For a more in-depth overview of futures and futures trading, check out our how-to guide here. However, the basic premise is this: Think of futures contracts as agreements between two parties to trade an asset (in this case Bitcoin) for an agreed-upon price in the future. 
Trading futures has many benefits and started out as a way of allowing large companies, farmers, oil producers, etc. to hedge their commodities’ value against price fluctuations. Say an oil producer believes that the price per barrel will drop significantly in the next six months. He can enter a futures contract to sell at today’s price in six months to secure his profit. Of course, he loses out if the price rises. Trading futures is always a gamble, even more so in the cryptocurrency space.
There are many different types of futures contracts, including physically settled and cash-settled, as well as daily and monthly settled and perpetual swaps. Until Bakkt makes its entrance in September of this year with the first physically settled Bitcoin Futures market, all futures in the crypto space are cash-settled. This means that the traders pay each other the difference instead of physically delivering the underlying asset (Bitcoin). 
While some traders are looking to hedge on price, most modern futures traders are speculators looking to trade on price fluctuations and make cash profits, rather than taking custody of the underlying asset (i.e. barrels of oil, bars of gold, or even bitcoins). This would be a physically-settled contract and is more applicable to institutional space, agricultural or airline industries, for example. 

Perpetual Swaps

What are perpetual swap contracts? Perpetual swaps have no expiration date, unlike daily or monthly settled futures contracts. This makes them easier to understand for retail traders and they will be the main focus of the Digitex Futures exchange. As Adam stated in the AMA about the testnet:
“With a futures contract that may not expire for another month, there’s a premium because the spot price is further away from the contract price. Also, at settlement, there’s a need to settle the old contract and then open a new contract. Perpetual swap futures are the way forward for attracting retail traders and therefore, ensuring volume.”

Futures Markets

The futures market globally is now enormous and growing all the time according to the Futures Industry Association, with futures traded against stocks, Forex, cryptocurrencies, indices, bonds, gold, and more.
If you were asking questions like, what are stock futures, what is day trading futures, and how to buy futures, it helps to have an overview of the different types of markets first–as well as the tools that good futures traders use to magnify their profits.
You can buy futures contracts through a traditional broker or online from an abundance of sites that make trading simpler and easier, cut out intermediaries and lower costs. On the Digitex Futures exchange, you’ll be able to buy cryptocurrency futures with zero commissions on all trades–a first for both the crypto and the futures industry.
Futures traders often use tools like margin and leverage to increase their profit sizes. Borrowing funds from an exchange to take a bigger position can be risky and highly leveraged traders can get blown out in volatile markets. However, leverage does give skilled traders the chance to make a lot of money fast and greatly magnify their winnings. This is why 100x leverage has become so popular in the cryptocurrency markets.

How to Buy Futures on the Digitex Exchange

On the Digitex exchange, you can buy futures using DGTX only. This means that you’ll need to know where to buy ether, first of all, to purchase DGTX and then all your profits and losses will be denominated in DGTX.
As Adam highlighted in his AMA, you will be buying a perpetual swap contract, which will be a dollar’s worth of DGTX tokens and has no expiration date. We are still finalizing the futures contract specifications, however, they will be essentially the same as other major futures exchanges such as BitMEX and Bybit to make it easier for their traders to switch over to Digitex. We want to make it as simple as possible to create winning traders and to allow them to trade successfully. 
Skilled traders are used to trading futures for profit. It takes time and discipline, but even you’re just starting out, earning some extra income from day trading futures is certainly within your reach, especially on a platform that charges no commissions and has no mechanical edge working against you.

Latest News