Digitex: Thecommission-free futures exchange
Introduction
Commission is a fee charged by an agent or broker for carrying out a transaction.
Am Israel a nigerian, i blog and I get paid in cryptocurrencies let's use Steemit as an example we blog and get paid in Steem, I can't use Steem to but coffee or a meal here in Nigeria I have to first exchange it to naira (Nigeria's fiat currency). I trade using airhawk-exchange, they allow me trade my Steem for naira and they charge
0.030 Steem is the commission they get for carrying out the transaction safety for me.
Digitex is a commission-free futures exchange, you might wonder how they cover operational costs by minting it's own native currency the “DGTX token" instead of charging commissions on trades.
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Digitex the commission free future exchange
The “DGTX" tokens as I earlier mentioned keeps Digitex going as a commission free exchange.
All traders must own Dgtx token to be able to a partake in the commission-free, trust less market on Digitex
the demand for DGTX tokens from trades will replace revenue/funds generation from transaction fees by creating and selling a small number of new DGTX Tokens each year
Digitex Protocol token (DGTX Token)
According to digitex white paper at the heart of digitex future exchange is its protocol takes the DGTX tokens. A trader must have a margin balance of DGTX large enough to cover his potential loses because of the tick value of each contract is 1 DGTX Token so as to be able to perform a transaction.
Main Features and Benefits
- Zero Trading Fees
- Decentralized Account Balances
- Highly Liquid Futures Markets
- Automated Market Makers
- Digitex Native Currency
- Token Issuance Revenue Model
- Bitcoin, Ethereum & Litecoin Futures
- One Click Ladder Trading Interface
Zero Trading Fees
There are no transaction fees of any kind on the Digitex Futures Exchange.
Decentralized Account Balances
Traders do not need to trust Digitex with holding their account balance in order to
trade on the exchange.
Highly Liquid Futures Markets
When you remove the constraints of transaction fees you get highly liquid markets
because traders engage in high volume, single tick trading strategies that are not
viable on other exchanges due to commissions
Automated Market Makers
Digitex market makers are automated trading bots with algorithms that are
programmed to break even.
Digitex Native Currency
The Digitex Futures Exchange has its own native cryptocurrency, called the DGTX
token.
Token Issuance Revenue Model
The Digitex Futures Exchange is revolutionizing futures trading by eliminating
transaction fees on trades and instead generating revenue through token issuance of
its native currency, the DGTX token.
Bitcoin, Ethereum & Litecoin Futures
Digitex has 3 futures markets: BTC/USD, ETH/USD & LTC/USD.
One-Click Ladder Trading Interface
Digitex futures markets are displayed on an intuitive ladder interface that allows
traders to submit buy and sell orders instantly with a single click.
Example Trade 1
BTC/USD Trade on Digitex Futures Exchange
• Bob is a short term, trend following Bitcoin trader. He sees the price of BTC/
USD start to rise and he jumps on by buying 500 BTC/USD futures contracts
with a single click of the mouse that are being offered for sale at $10,700.
• The price rises quickly and then starts to come down so Bob immediately hits
the bid and sells 500 contracts at $10,720 with a single click of the mouse.
• The tick size of the BTC/USD futures contract is $5 so Bob has made a profit of
4 ticks on a 500 contract position which is a 2,000 tick profit. 1 tick is worth
1 DGTX so he has made a profit of 2,000 DGTX.
• The current market price of 1 DGTX token is USD $0.10 so Bob’s profit is
2,000 DGTX × $0.10 = $200.
• Bob’s initial margin requirement to open his trade was 500 × 20 DGTX =
10,000 DGTX ($1,000). He needed this much in his account to be able to enter
the trade. His account balance is held by an independent smart contract, not by
the exchange.
• There are zero transactions fees on all trades so Bob’s profit of $200 after
commission is $200.
| BTC/USD Trade | Digitex Futures Exchange | Cryptofacilities.com | GDAX.com |
|---|---|---|---|
| margin required | $1,000 | $17,869 | $107,000 |
| margin held by | independent smart contact | cryptofacilities | GDAX |
| profit on trade | $200 | $200 | $200 |
| commission on trade | $0 | $171.36 | $535.50 |
| profit after commission | +$200 | +$28.64 | - $335.50 |
Summary
Digitex is a commission-free futures exchange, you might wonder how they cover operational costs by minting it's own native currency the “DGTX token" instead of charging commissions on trades.
Commission-free markets create demand for DGTX tokens which more than offsets
the inflationary cost of creating that demand.
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