DIGITEX FUTURES: ZERO FEES TRADING EXCHANGE

teddymurphy (26)in #contest • 6 years ago

One of the perceived flaws of bitcoin and crypto investment is its nature of volatility. For instance, you could invest as much as 250,000 US dollars when the market is stable and favorable to everyone but let's say three months down the line, investments could crash to as low as 10,000 US dollars. A scenario like this is enough to make you keep your arms to your side, all in the name of playing safe. But then again, the biggest risk is not taking any risk at all.

In the world of investments, there are bound to be losses as much as there are bound to be gains, which is why in order to cut losses, an innovation called Futures was introduced.

In very simple terms, Futures or Futures Contract is a financial instrument for risk management (lock in prices) which makes individuals agree to buy or sell an asset at a set price on a set date in the future. There are basically two types of futures, namely ‘Long and Short futures contract'. In the long contract, you buy assets on a particular date at a particular price, while in the short contract; you sell assets at a particular price on a particular date. It gives traders the opportunity to trade prices without the high costs and risks of transferring, storing and paying in full for the actual underlying instrument on whose price they are trading. As with all futures exchange, both in physical and crypto markets, every exchange futures contract will require that you pay brokerage fees, clearing fees and settlement fees. Though they lower costs, these fees are significantly high volume, low-profit-margin futures trading strategies that convert marginally profitable strategy to losing strategy after the payment of these fees. This factor makes Digitex your best buy when it comes to futures exchange.

Too good to be true right? Well, it is, Let me show you how this works.

Digitex futures is a trading environment for trustless buying and selling of digital currency futures contract with no transaction fees whatsoever. Unlike many futures platform, Digitex does not hold client's funds; it combines the trustless security of decentralized account balances with the speed and reliability of a centralized order book and matching engine.

So, if as a short-term Bitcoin contract holder, I realize that the price of Bitcoin/USD rises, I could decide to buy 400 BTC/USD futures contract at the offering price of 10,500 USD. While still observing the price, I notice that after a steady increase, it begins to drop, as a short-term contract holder; I would make a bid of the 400 contracts and decide to sell at 10,530 USD with a single click of the mouse. If the tick size of the BTC/USD futures contract is $4, I have made a profit of 4 ticks on a 400 contract state which is a 1600 tick profit. I tick is worth one Digitex, so I have made a profit of 1600 Digitex. If the current market price of a 1DGTX token is 0.10 USD, my profit is 1,600 DGTX×0.10=$160. With the initial margin requirement to kick off my trade at 400×30 DGTX=12,000DGTX ($1200). I will be required to have this much in my account to be able to partake of this trade. In all these transactions, my account balance is kept by an independent smart contract, not by Digitex. Since there are no transaction fees on my trade, my profit of $1600 after commission still remains $1600 dollars.

So, if this is how it works, how then does Digitex cover costs?

At Digitex, we understand that the constraints of transaction fees cause low liquidity markets, making traders engage in low volume, multiple ticks trading strategy which is the reverse with Digitex. The no transaction fee gives us a highly liquid market because traders are comfortable to engage in high volume, single tick trading strategy. The highly liquidized market is further enhanced by the presence of automated market makers, funded with 20% of the supply of DGTX tokens, that are programmed to break even while keeping spreads tight at all times, even in volatile market conditions. We make our profits by creating an ERC-223 compatible protocol toke on the Ethereum blockchain called the DGTX token and using it as the DFE's native currency in which all profits, losses, margin requirements and account balances are denominated. While eliminating transaction fees on trades, we cover the cost by creating new tokens instead of charging fees. The inflation cost from this process is relatively small; and is more offset by the demands that are created by traders who must own DGTX tokens to participate in the commission-free, liquid markets created by this model.

As a futures exchange platform, Digitex is run on Blockchain, which is characterized by decentralized governance. It uses Blockchain to govern the issuance of new tokens, effectively and democratically through rules and voting systems that are inbuilt in the smart contracts. As a DGTX token holder, you are expected to act on your own self-interest when it comes to deciding the amount of new DGTX token to be created in order to cover the cost of operating the Digitex Futures Exchange. To balance the inflation costs that come with creating new tokens that leads to a well-funded, well-managed futures exchange that provides the ongoing and increasing demand for DGTX, you must preserve the current value of DGTX, by minimizing the creation of new tokens to cover the development and operational costs of the DFE. This will increase the value of DGTX tokens through increased demand from traders. Voting on proposals can take time and attention and would require you to be constantly active and accurately informed about everything. This may be strenuous for you, but you can delegate your voting power to a trusted person who would vote on your behalf if you do not want to play an active role.

As an owner of DGTX tokens, you have the ability to engage in the buying and selling of liquid futures contract on the price of Bitcoin against the Dollar, Ethereum against the Dollar and Litecoin against the US Dollar without having to pay any transaction fees. Also, on the DGTX futures, traders will be able to eliminate risk, by the DGTX peg system. The peg system is a futures contract on the price of DGTX that allows the owner of DGTX tokens to lock in a sale price while keeping physical possession of their DGTX tokens to use as margin for doing trade on the DGTX futures markets. The price of DGTX can be pegged in this way against ETH and BTC.

Digitex offers you security from potential hackers who might want to hack the exchange for the purpose of updating the smart contract with false information that lets them withdraw tokens from your account. Digitex calculates your trading profits and loss from the onset of all your matched trades whenever the smart contract asks for an update to your trading account balance. It becomes impossible for the hacker who may have gained access to the exchange to send incorrect updates to the smart contract because he will be unable to create the fake matched trades needed to calculate his fake profits and update the smart contract with it. Security is further enhanced by the Metamask browser plugin every Digitex Futures holder is expected to have. The Metamask browser plugin enables just you to withdraw from your account, using the Metamask's secure identity vault which uses signed Blockchain transactions to verify you are the same person that made the deposit. This is done in a completely anonymous way that requires no identifying information from you.

With this strong foundation, by 2019, 2020 and 2021, Digitex Futures will cause highly liquid, commission-free futures markets to run on a stable, fast and trustless platform. This will lead to a period of exponential growth in cryptocurrency trading that will attract more traders, thereby creating a huge demand for DGTX tokens.

With Digitex, you gain so much leverage during investments,do click and share with your friends. Happy trading!