At Digitex Futures, we firmly believe that traders are made and not born. Anyone can become a winning trader with the right level of discipline, attitude, practice, and commitment. Digitex CEO Adam Todd is a living example of this. With no formal college education and no understanding of the underlying instruments on which he was trading, Adam carved out a career as a successful futures trader in the open outcry trading pit in London.
There are many different trading strategies and choosing one depends on various factors, from how much time you have to dedicate to trading, to how quickly you want to see a profit, and how much loss you’re prepared to absorb. On the Digitex platform, all types of traders are welcome. However, zero commissions on all trades will be particularly attractive to high-frequency short-term traders, otherwise known as scalpers.
The scalping strategy can create many winning traders in the right conditions. Rather than chase big profits, scalpers will look to minimize their risk and avoid as many losses as possible. This is why they hold their positions for a very short time (sometimes even seconds) as the longer you hold a position, the greater your exposure to risk.
Adam’s scalping strategy involves judging when the momentum is high enough to keep the move going for another 30 seconds. If he doesn’t get at least a single tick profit within that time frame, he will exit that trade.
If you’re new to cryptocurrency, the good news is that short-term scalping requires no fundamental knowledge of the underlying instrument on which you’re trading. You simply look to buy and sell with a one or two tick profit or even a scratch, avoiding any losses and with zero emotions attached to the trade.
This style of ultra short term, manual trading is labor-intensive and requires full concentration and attention. You can’t be checking emails and looking on Facebook or reading random crypto trading articles while you’re scalping to win.
This scalping style of trading is the easiest to learn and will give you steadier, less volatile results. However, scalping like this is particularly susceptible to the unforgiving maker and taker fee model of all other crypto futures exchanges.
The taker fee model used has established commissions that are astronomically high and scalping to win is rendered impossible. The commission cost of buying and selling one futures contract with a taker order is more like 10 times the value of one tick.
A typical trade for a short term scalper involves entering a trade quickly, then immediately placing a maker order to join the bid or offer to get out. If it’s not filled within seconds, the scalper will cancel it and lift the offer or hit the bid with another taker order to exit the trade.
Large commissions make it impossible for profitable short-term scalping currently which greatly damages liquidity as active traders are the lifeblood of an exchange. The Digitex Futures exchange will be a short-term trader’s paradise. With no trading fees of any kind on taker orders, traders will be free to pursue strategies that are not viable anywhere else, creating massive liquidity in the process and more and more winning traders over time.