Introduction
Futures trading is the buying and spelling of the future rise or fall in the price of an asset at a specified time. Sellers or owners of assets enter into a futures contract with buyers of the asset so as to save themselves from risk should there be a fall in the price of the asset. The buyers are predicting a future rise in the price of the asset while the seller's are predicting a future fall in the price of an asset. As a result, both the buyer and the seller will enter a futures contract based on the current market price on that asset and at an agreed date in the future. If at the time of expiry of the contract, the price of the asset rises higher than the price when they entered the contract, the buyer is supposed to profit and if the price falls lower than the price when they entered the contract, the seller is supposed to make some profit and the buyer some losses.
This sort of price trading is done on an exchange known as futures exchange. The futures exchange is the market place where futures investors buy and sell the price of assets. But transacting such trade in the futures exchange is not free. Both the sellers and buyers are charged commission on every contract entered. This means that, for the buyer or seller to profit from the futures contract that they have entered, the price has to move to cover the commission fee before they can make any profit. And should the market not go as predicted, the party the market doesn't favour will be incurring more risk because of the commission charged by the exchange. Also, users of futures exchanges are also required to trust the exchange with their account balances and private information. Paradventure the exchange get involved in dubious practices or there's any form of security breach, both the uses' monies and their personal information will be at risk. All these and many more are the problems that the DIGITEX FUTURES EXCHANGE has come to address in the current futures market.
DIGITEX FUTURES EXCHANGE
Digitex futures exchange is a trustless and commission free futures exchange. This means that, the users of such exchange are not charged any fees or commission for transacting futures businesses on the exchange and they also don't have to trust the exchange with their account balances or private information. Digitex gives its users great control over how and when they trade futures and doesn't hold the user's information or balances. How is this made possible?
How Digitex Works
The digitex futures exchange is powered by a native cryptocurrency called the DGTX token. This currency will be used to denominate every margin, account balances, profits, losses and tick sizes on the exchange. This implies that, anyone that wants to use the digitex exchange to trade futures will need to have this token in order to be able to utilize the no-commission digitex futures exchange. This token is the reason why digitex users can be able to use the exchange for free.
How does the DGTX Token makes the exchange commission free?
Digitex futures exchange uses the creating and selling of its native currency to cover for its operational cost. Since every user of digitex will need to own the DGTX token in order to participate in the exchange, the demand for the DGTX token will be very high and it is this demand for the token by the digitex users that will be used to cover for every cost that will be required to keep the exchange operational.
DGTX tokens will be created based on the estimated cost of running the exchange and the created DGTX token will be sold to every user that wants to be part of the digitex system. It is this creating and selling of the DGTX token to both new and old users of the system that will be used to cover the running cost of the exchange.
Who determines The Operational Cost Of Running The Exchange And How Many DGTX Tokens To Be Created?
The operational cost for running the exchange will be projected by the digitex team responsible for keeping the exchange operational and an estimated value will be given. This estimated value will be the proposed amount of the DGTX token that will be minted. But the process of arriving at this value or the templates used in arriving at this value will be made available to all digitex users.
After the cost in DGTX for keeping the exchange running has been determined, digitex users will now have to vote on the volume of the DGTX token to be minted. The digitex users are the ones that will always determine when, how and how many DGTX tokens will be minted. The vote by the users will be done through a decentralized governance by blockchain. Each vote will be equivalent to 1 DGTX token. A user with 50 DGTX tokens will be having 50 votes and so on.
The volume of token voted on by the digitex users is what will be minted and sold to both existing and new users to keep the exchange running. Since keeping the digitex exchange operational will be in the interest of all digitex users, the users will always ensure that they do what is best for the exchange and vote accordingly.
Digitex will not be minting any new DGTX tokens two years after its launch because the purchase from the token's ICO sale will be used to cover its operational cost. New tokens will be minted around 2021 to cover for the operational costs of keeping the exchange running. The token will always be in demand because both existing users and new users will need this token to participate in the digits free exchange so the exchange will always run smoothly with no hitch.
How To Become Part Of The Digitex Exchange
Futures investors and intending futures investors can become part of the digitex exchange by purchasing the DGTX tokens. This tokens can be purchased either during the ICO sale or when new tokens are minted. Users will be required to go to the digitex website to register and after their registrations have been confirmed, they can log in to the website and click on the "buy token" button. They can pay for the amount of tokens they want by sending ethereum to the digitex smart contract address on the website and they will automatically receive the corresponding amount of digitex tokens. This token is needed to buy or sell futures contracts on the exchange and every user will need to have a margin balance in DGTX token that can cover his/her losses because the tick value of each digitex futures contract is 1 DGTX token. This implies that all profits and losses are denominated in this token.
DGTX Token Supply And Distribution
Digitex will be putting 1 billion DGTX tokens for sale during the initial sale. 65% of this tokens will be sold to the public, 20% will go to the digitex market makers, 10% will go to the digitex team and their advisors and 5% will go to referrers.
Futures Markets That Can Be Traded On Digitex
The three futures market that digitex will concentrate on are BTC/USD, ETH/USD and LTC/USD. These futures markets have high daily volumes and liquidity and they are not as volatile as most other futures market.
Comparison Of Futures Contracts Entered On Digitex Vs Other Exchanges
The image above showed trade entered on three different exchanges and the results obtained. The three exchanges are Digitex, BitMEX.com and Kraken. We can see how the commission charged by the other two exchanges wiped away the profits of the user. The one of Kraken was even in red because the price move could not cover the commission before the expiry of the contract, while digitex gave the trader the complete profit untouched.
This is just a small fraction of the the benefits that digitex will be offering to futures traders. With digitex, futures traders won't be scared to implement whatever trading strategy that works for them because there will be no commission to drain their profits and put them in the red zone.
Advantages Of Trading Futures Contracts With Digitex futures exchange
Below are some of the advantages that the Digitex futures exchange offers to its users over other exchanges.
Zero fees on all trades:
Digitex charge no fees for trading futures on its platform. This will ensure that futures traders are given the maximum profits on all of their trades and also minimize their loses in situations where the market didn't go in their favour.
Decentralized account balances:
Digitex don't require its users to trust them with their funds or private keys before they can use the exchange. Each user's account balance is held by a decentralized, independent smart contract on the ethereum blockchain. This implies that Digitex cannot freeze, mismanage or lose your funds. You're always in charge of your funds at all times.
Users privacy is a priority:
Users are not required to submit personal information or documents before they can participate on the exchange. Since Digitex will be run by its own native currency, Digitex users won't need to go through the KYC cumbersome registration process before they can participate on the exchange. So their privacy is guaranteed.
Digitex is blockchain driven :
Through the creation and use of its own currency, storage of account balances trustlessly and allowing traders determine token issuance, Digitex utilizes blockchain technology to keep it running smoothly. So the revolutionary blockchain technology will ensure that is easily accessed from any where around the world.
Sub-millisecond order matching :
Digitex matches trade in less than one millisecond. It updates prices in real time and it is web browser based with nothing to download. It's very fast and matches order instantly.
Large tick size:
Digitex offers large tick size so as to remove noise and allows volatile futures contracts to be displayed on a scalper friendly one click ladder trading interface without the price constantly disappearing off the top of the page and off the bottom of the page.
One click ladder trading interface :
Traders can submit buy and sell orders instantly with a single click and can easily manage their contracts on the Digitex futures exchange.
Etc.
These are just a few of the numerous advantages that the digitex Futures exchange will be offering its users.
USE CASES
Use Case 1
Samuel is a FOREX trader that wants to diversify his investment into the Bitcoin and Ethereum futures market. He started researching for an exchange with a low commission through which he will access the market but he could find none. The exchanges he found charged commissions that are higher than what he is used to in the forex market. He kept on researching and suddenly came across an exchange that charge no commission called Digitex. He researched more on it and discovered that it is a legit exchange. Samuel is now a futures trader on the Digitex futures exchange.
Use Case 2
Felix is a futures trader on Kraken exchange with a good trading strategy. But his strategy is not giving him the sort of profit that he should be getting because of the high commission he is charged for each contract he entered. He started searching for an exchange with a lower commission than Kraken exchange that would switch to when he came across Digitex.
He couldn't believe that an exchange like digitex could exist in his life time. He read more about it and looked on users reviews to be sure it's actually real. His findings turn out to be true. He switched to digitex and he is now enjoying the whole 100% of his profit.
Conclusion
Digitex is very revolutionary and offers great opportunities to both its users and the futures market. This exchange is the future of the futures market.
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