A VIEW INTO THE WORLD OF FINANCIAL DERIVATIVES AND INSTRUMENTS

In today's most recent operation, there has been an influx of the mass adoption of new techniques and methods in lieu to revamp the financing decision and transaction based process between buyers and sellers in the exchange market.
Likewise, contracts have necessitated legal binding conducts on transaction that have saddled traders on a horse of financial adventure beyond what has ever long seemed to be a water shed for breaking barriers and limitations to financial transactions. This brings us to the light of financial derivatives and instruments.

WHAT ARE FINANCIAL DERIVATIVES?

Financial derivatives are means to an end that guarantees having a holding a financial value that depends on an underlying asset/property of variable value other than express money or liquidity. One major advantage of financial advantage is the fact that financial value can be deferred from liquidity (money in hand). In other to ensure safe transaction and gives buyers of goods and service a leverage to extend payment on agreed future date.

FINANCIAL INSTRUMENTS

These are documents with legal backing and procedures that holds the promise of payment, financial consideration or remuneration upon an agreed future date different from the transaction date registered between a buyer and a seller.

FUTURES

Due to the variation in times, distance, interest space and accessibility there is at most times the need to put up measures to ensure deffered means of service delivery to traders (buyers and sellers), this is the sole aim of futures. Futures are commodities or stocks bought or sold with the understanding that they will be delivered at a steady beyond the current one.

WHAT IS FUTURES CONTRACTS?

Futures contracts is a mechanism that facilitates the consensual interest of traders for the exchange of goods and services which are based financial instruments that holds a fixed or determinable date if payment in the future other than fiat money in order to mop up at times excess liquidity in the economy and high inflationary costs.

THE CURRENT PROBLEM

In the practice of futures exchange and the trading of digital currencies in the futures market, there is a trend that not only seem palpable but also exorbitant. This is the charge levied on transactions which are known as ''commission fee''. These fees are charged on trading which inadvertently leads to high inflationary costs amongst traders in the futures market.

With the adoption of cryptocurrency mining, trading of virtual currency through blockchain network with a secure end to end encryption, it is still of a great shortcoming that these financial transactions run on a high thrust of trading fees which fizzles out many potential investors and crypto users in the financial scene.
Another shortcoming is the fact that even after such viable investment in the future market with respect to stock, shares, goods and services the profit realised from such ventures may be crippled, slashed, stifled or not even commensurate to the amount initially invested due to the high level of instability in the price rate of virtual token and digital currencies all around the world. It would be sad if having to pay certain sums and amount charged as commission on transactions and not having to recoup financial recompense from such dealings this will utterly disrupt patronage, trust level in crypto financial users and investors and likewise result into a gloomy foresight to the future of exchange in the future.

In light of creating a viable atmosphere for trading in the future market (https://www.digitex.com/), a new organization saddled with the wherewithal to provide a commison free future exchange system has come to stay and effect a surmountable change.

WHAT IS DIGITEX?

Digitex is a decentralized, blockchain based, commission free, trustless future exchange system for trading digital currency prices and commodities.

Digitex is an organization that bears in mind the primary aim of revamping and subsiding transaction based process between future traders in the exchange market by cutting exorbitant cost and commission fees charged in these transactions which cripples and hampers the viability of investment by crypto financial users and digital currency traders in the world of virtual token trading and instrument.

FOUR BASIC OUTLINES OF DIGITEX OPERATIONS

1. COMMISSION FREE FUTURE TRADING

Digitex facillitates a commission free future exchange system that covers operational costs through the mining of its own currency (DGTX) token which is optimizable for use through the incurment of small inflationary cost (which are beneficial in the long run) upon exchange operations. Well known virtual currencies like bitcoin, etherum, luno, dutch coin and the host of others have been viable has a means of safe exchange due to the adoption of blockchain technology that encloses users and ensures the buyers and sellers are compensated equally without having to worry about the risk of default upon payment. Likewise the dgtx which is digetx token will serve as a virtual currency for payment with respect to transaction in the future market one of which does not attract commssion fees like other virtual operations

2. TRUSTLESS FUTURE TRADING.

Digitex also enables a trustless future trading like no other that ensures that traders and investors are compensated while trading in the future exchange market. This is dynamic because even with the advent of high inflationary costs that threatens the future of investment, digitex ensures that traders and investors are compensated almost immediately which means they do not have to worry about unforeseen future occurrences which may be detrimental to investments and profit ranging from price fluctuations, economic downturn, high rate of inflation etc.

3. THE DIGITEX FUTURE EXCHANGE.

With every new crypto based institution and financial organization comes an ICO (initial coin offering) and KYC (know your customer) this processes are carried out in a bid to publicize the company to the world at large and interact with the public in order to facilitate the issue and sale of digital tokens. Digitex also like the other block chain based institution is creating a niche for itself that makes it stand out with an ICO that gives out 65percent of its virtual currency to be listed in the market for potential buyers and interested investors while 35percent are analyticaly spiltted into other appropriate segment. With 60percent of the dgtx token available to the public for sale, investors will be happy to buy into the digital currency with no commission fee charged on these transactions. Traders will be able to make payments for goods and services with the dgtx currency other than the conventional fiat money or other variant tokens.
Mining of the dgtx will go in for a while, about the span of a year and a few month and subsequently two years after the official public launch of the digitex future exchange, digitex will start creating new dgtx tokens to cover the on going cost of operating the exchange. The following are the main features and benefits.

1. Zero trading fees

1. Decentralised account balances

1. Highly liquid future market

1. Automated market makers

1. Digitex native currency

1. Token issuance revenue models

1. Bitcoin, Ethereum and Litecoin futures.

1. One click ladder trading interface

1. Large tick sizes

1. High Leverage

1. No auto deleveraging

1. Sub-Milisecond order matching

1. Off-chain price discovery and On-chain settlement

14. Decentralized governance by block chain.

1. Complete privacy

1. Blockchain driven

4. DECENTRALISED GOVERNANCE BY THE ADOPTION OF BLOCKCHAIN TECHNOLOGY (DGBB)

Digitex has an exchange that replaces centralized account balances with an independent, decentralized smart contract on the etherum blockchain that holds all account balances. This hybrid model of a centralized matching coupled with a decentralized account balances gives traders the speed and reliability of offchain price discovery combined with the trustless security of onchain account settlement.

Blockchain technology has been infused into the digitex operation such that it allows the exchange to eliminate the transaction fees through the creation of its own cryptocurrency and smart contracts on the blockchain hold traders account balances, allowing the exchange to operate trustlessly.

Digitex makes use of blockchain to administer issuance of new tokens efficiently and democratically through rules and voting system that are encoded into smart contract.

VOTING ON NEW TOKEN ISSUANCE.

Voting on proposal takes time and attention and require users to constantly be active and accurately informed about everything. Dgtx token owners can therefore delegate their voting powers to a trusted person who Vite on their behalf who play an active role

To participate in this contest kindly click and follow this link:
https://steemit.com/crypto/@originalworks/1250-steem-sponsored-writing-contest-digitex

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