• Adam at Digitex
    2
    Margin is the amount of money that a trader must put down to cover his potential loss on a trade before he can enter that trade. All margin requirements on the Digitex Futures Exchange are payable in DGTX tokens because the traders potential loss will be in DGTX tokens because the tick value of each futures contract is 1 DGTX token. A tick is the minimum price increment on a futures market. For example, here are the contract specifications of the BTC/USD futures contract:

    BTC/USD Futures Contract
    Tick Size: $5
    Tick Value: 1 DGTX
    Initial Margin: 20 DGTX
    Maintenance Margin: 10 DGTX

    Initial Margin is the minimum amount of money the trader must have in his account to open a position by buying or selling 1 futures contract. Maintenance margin is the minimum amount of money the trader must have in his account to keep his position of 1 futures contract open. If his account balance goes below the maintenance margin level his position is automatically liquidated by the exchange.

    Small margin requirements on the Digitex Futures Exchange give traders high leverage because they must only put down what they might lose instead of having to put down the full value of the underlying instrument on which they are trading. This allows them to make (and lose) large percentage gains on their trading bank with relatively small price movements on the underlying instrument.
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