Content:
Must-Read for New Users🚀
1. What Is BingX Grid Trading?
2. Why Should I Try Grid Trading In the Crypto Market?
3. What Types of Grid Trading Are Currently Available? What Are the Differences?
4. Which Type of Grid Trading Is Suitable for the Current Market?
5. Is Waiting for a Lower Price Necessary Before Starting Grid Trading?
6. Can Novices Use the Grid Trading?
7. Is There Any Possibility of Losing Money in Grid Trading?
Get Hands-on Experience🚀
1. How to Start Grid Trading?
2. In What Scenarios Should I Use Grid Trading?
3. How to Choose Grid Trading Pairs?
4. How to Set the Max. Price and Min. Price of a Grid Strategy?
5. How to Set the Grid No.?
6. What Is the Use of Backtesting and Stop Loss?
7. What to Do If the Price Range Is Exceeded While the Grid Is Running?
8. What Kind of Grid Trading Can Reduce Risks and Better Deal With Sudden Market Fluctuations?
Other FAQs🚀
1. What Trading Pairs Are Available in the Grid Trading?
2. How Are Trading Fees Charged for Grid Trading?
3. Is Copy Trading Supported?
4. What Is the Minimum Investment Amount to Start Grid Trading?
5. Where Do the Recommended Parameters for the Grid Strategy Come From?
6. What Is Max. Price and Min. Price?
7. What Is Grid No.?
8. What Is the Profit Per Grid (Profit/Grid)? How Does It Relate to the Grid No.?
9. Is the Grid Currently an Arithmetic Grid or a Geometric Grid?
10. What Is the Total Profit?
11. What Is Arbitrage Profit? What Is Unrealized P&L? APY (Annual Percentage Yield)?
12. What Happens When a Position Is Still Held When Closing the Grid Strategy?
13. What Is the Order Placement Amount?
Grid Tutorial Collection📖
1. Spot Grid: The Ultimate Weapon to Profit from Volatility. Available for Copy Trading Too.
2. Futures Grid: Now Supports Long/Short Directions, Amplify Your Profits
3. Spot Infinity Grid: Level Up Your Arbitrage and Earn Without Limits
💬 Grid Trading Customer Service
You can contact BingX grid assistant via Telegram: @bingxsmart
❓ Must-Read for New Users
1. What Is BingX Grid Trading?
The essence of Grid Trading can be summarized in one sentence: In a volatile market, it automatically buys low and sells high to gain profits.
By setting a price range, the fund will be divided into equal shares and will operate automatically according to the set grid parameters. When the price falls, it will buy shares, and when the price rises, it will sell shares. Each buying and selling of a grid will generate a price difference and continuously accumulate profits in a volatile market.
At the same time, your risk has also been reduced because your investment has been divided into hundreds of tiny positions. As long as the market fluctuates, you will continue to make profits.
2. Why Should I Try Grid Trading in the Crypto Market?
Crypto is a market that never closes and undergoes constant and significant fluctuations.
Grid Trading is a tool that perfectly adapts to the unique characteristics of the crypto market:
1. Keeps running 24/7, eliminating the trouble of constantly monitoring the market.
2. As long as the market fluctuates up or down, there will be profits.
3. What Types of Grid Trading Are Currently Available? What Are the Differences?
BingX has already launched the Spot Grid, Futures Grid, and Infinity Grid.
| Spot Grid | Futures Grid | Spot Infinity Grid | |
| Price Range | Set an upper and lower price limit | Set an upper and lower price limit | Only set a lower price limit |
| Type of Grid | Geometric Grid | Geometric Grid | Arithmetic grid |
| Strategy | Set price range and grid number to buy low and sell high | Set price range and leverage, to buy low and sell high through Futures trading | Set the profit/grid to buy low and sell high |
| Position Conditions | Automatically opens the position, no leverage; margin equals the total investment | Open a Long/Short position, supports up to 20x leverage to amplify profits | Automatically opens the position, no leverage; margin equals the total investment |
| Profit Calculation Method | Grid Trading Profits + Unrealized PnL | Grid Long and Short profits + Unrealized PnL | Grid Trading Profits + Unrealized PnL |
| Ideal Scenario | Market fluctuating within a range | Volatile market | Volatile yet upward market |
| Does it support Copy Trading? | Yes | (Stay Tuned) | (Stay Tuned) |
4. Which Type of Grid Trading Is Suitable for the Current Market?
First, you need to understand the differences between these three grids.
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The Spot Grid could be considered the classic grid. After setting the upper and lower price limit, the grid will repeatedly sell high and buy low within the set price range to earn profits.
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The Spot Infinity Grid is an arithmetic grid with no upper limit. Digital assets' value is maintained through buying and selling at a fixed ratio. For example, if you have 10,000 USDT of BTC and set the Infinity Grid's profit per grid to 1%, whenever the price of BTC increases by 1%, the Infinity Grid will sell off this increased portion, allowing you to maintain continuous arbitrage in a rising market.
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The Futures Grid is an enhanced version of the Spot Grid. The essence of grid trading is position management + high-frequency trading. The Futures Grid builds on the foundation of the Spot Grid by adding leverage, thereby amplifying the margin and profits to achieve both low risk and high yield.
You must bear in mind the market fluctuations of different currencies will not be the same, and there is no such grid strategy that can be applied to all market conditions. You can make a choice based on your understanding of the principles of the three grids:
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For example, if you expect the market to be bearish and don't want to hold a particular currency for an extended period but want to take advantage of a highly volatile currency to make short-term profits, some people will choose Futures Grid. Because when opening a position, there is no need to hold the same risk as a Spot position. As long as the fluctuations are within the set price range, the grid will continue to buy low and sell high, which can be supported by leverage to amplify profits.
5. Is Waiting for a Lower Price Necessary Before Starting Grid Trading?
Long-term Perspective:
Grid Trading is a trading strategy that relies less on capitalizing on optimal timing in the market. It reduces your investment risk by diversifying positions and investment time. So you can trade on the grid anytime.
Short-term Perspective:
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Spot Infinity Grid and Spot Grid: An initial position will be opened and the grid strategy will be triggered after the crypto plummets in price. There is a higher margin of safety as the currency has less room for further plummeting.
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Futures Grid: Currently supports neutral, long, and short directions. As no crypto is actually held when executing a Futures Grid, a reasonable judgment of the future price trends and setting a suitable price range can be more important than considering the current price level.
6. Can Novices Use the Grid?
The crux of Grid Trading is buying low and selling high to earn profits from market fluctuations. Grid Trading is a trade execution system with position management, automated by BingX's Grid Trading tools. It helps you overcome the human barriers in manual trading, freeing up your time and energy and eliminating the need for real-time market monitoring.
If you are a Grid Trading beginner, you can create your first strategy in the following ways:
1. Open a strategy through Copy Trading. Grid trading is an advanced trading tool. Creating a grid trading strategy through Copy Trading to observe the parameter settings of seasoned traders for different currencies and market conditions, and you can gradually understand their logic.
2. Try it for yourself with a small investment. For your first strategy, it is best to choose BTC and ETH, which both have high market capitalization and good liquidity. The set price range should not be too narrow, and the grid number should not be too large. Instead of pursuing high-frequency arbitrage initially, aim for something stable.
Once you gradually understand the basics of Grid Trading and become more comfortable through hands-on experience, you can try creating a Grid Trading strategy with a more considerable investment.
7. Is There Any Possibility of Losing Money in Grid Trading?
Grid Trading is one of the most classic trading strategies. A large number of users have made profits through Grid Trading.You can view other users' Grid Trading ROI in Copy Trading - Spot Grid.
Grid Trading will ensure that grid profits are earned. However, in the case of the market trending unilaterally, your cost of held positions may be higher than the current price, which may cause unrealized losses. Therefore, implementing a grid strategy requires skills too. You need to ensure that your grid strategy runs within the range of volatility so as to arbitrage continuously.
❓ Get Hands-on Experience
1. How to Start Grid Trading?
🖥️ Web Version: https://bingx.com/en-us/strategy/
📱App Version: Click "Grid Trading" on the homepage
📱App Version: Click "Grid Trading" on the homepage
2. In What Scenarios Should I Use Grid Trading?
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After a cryptocurrency experiences short-term plummeting, it is an excellent time to use Grid Trading because the room for a further price drop is limited, and the margin of safety is higher. Even if the price falls, it can also be used as a tool to buy low in batches.
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When encountering a trending Altcoin, such is the case with DOGE and MASK, the price volatility will inevitably be high while the currency is trending. This type of scenario is also suitable for opening a Grid Trading order, as there will be likely more arbitrage opportunities. However, it should also be noted that the grid strategy's upper and lower price limits and the interval between each grid should be appropriately sized. It's also important to beware of the strategy being caught in a unilateral market.
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When you are optimistic about a long-term potential of a particular currency, you can keep your Spot Infinity Grid running to achieve continuous arbitrage.
3. How to Choose Grid Trading Pairs?
If you are a new user, BTC/USDT, ETH/USDT, and other mainstream trading pairs with high market capitalization and good liquidity are great options when using grid trading for the first time. If you already have a deep understanding of Grid Trading, you can try trading pairs with higher volatility to earn higher profits. However, it is essential to remember that risks and rewards go hand in hand.
When you create a Spot Grid or Spot Infinity Grid strategy, you should opt for cryptocurrencies you are willing to hold for a long time, such as BTC or other currencies you have faith in. You can widen the price range. If the currency drops, you can stock up on the coin at a reasonable rate. If the currency rises, however, you'll be able to profit in batches.
When you create a Spot Grid or Spot Infinity Grid strategy, you should opt for cryptocurrencies you are willing to hold for a long time, such as BTC or other currencies you have faith in. You can widen the price range. If the currency drops, you can stock up on the coin at a reasonable rate. If the currency rises, however, you'll be able to profit in batches.
4. How to Set the Max. Price and Min. Price of a Grid Strategy?
The red box indicates the ideal price range of the grid, which lies between the resistance and support level.
Common ways to decide the upper and lower limits of the price range:
A. Refer to momentum indicators. For example, use the upper and lower Bollinger Band of the candlestick chart of the last 4 hours or of the day as the grid limits.
B. Set according to the candlestick chart pattern. For example, refer to the 4-hour candlestick chart and set the upper and lower limits according to the most frequent highs and lows.
5. How to Set the Grid No.?
The Grid No. determines the grid density.
After you set the upper and lower ranges, the system will calculate the range from the lowest price to the highest price of your grid. The Grid No. refers to the number of grids in your strategy within this range. Roughly speaking: Profit/Grid = (Max. Price - Min. Price) / Grid No.
With a constant total investment, the denser the grids, the more they can capture small swings in the market, but, at the same time, the smaller the average fund per grid.
Setting a proper number of grids needs to take into account both the fund per grid and the grid density.
Usually, investors can refer to the Average True Range (ATR) which measures volatility. If you want your grid to trade every 15 minutes, refer to the 15-minute candlestick pattern to determine the ATR.
Grid No. = (Max. Price - Min. Price) / ATR (20) of the 15-minute candlestick pattern
Grid No. = (Max. Price - Min. Price) / ATR (20) of the 15-minute candlestick pattern
6. What Is the Use of Backtesting and Stop Loss?
Backtesting feature: Tests the performance of the parameters that you set. However, please be aware that the historical data is for reference only.
Setting a stop loss: Adds a safety belt to your grid.
7. What to Do If the Price Range Is Exceeded While the Grid Is Running?
If the market price falls or rises outside the set price range, it means that the price of the trading pair is not fluctuating within the expected range. At this point, a stop loss should be considered, and the grid should be closed.
So usually, we recommend that you set a relatively large grid range. Or consider a combination strategy of different grid ranges (three different grid spacings: large/medium/small).
8. What Kind of Grid Trading Can Reduce Risks and Better Deal With Sudden Market Fluctuations?
The biggest enemy for Grid Trading is a unilaterally trending market that continues to rise or fall in one direction without bouncing back.
There are usually four countermeasures. Using Futures Grid for the following example:
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Choose BTC, ETH or other trading pairs with high market capitalization and good liquidity.
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The grid range should not be too narrow. Risks will be significantly reduced when the range is wide and the investment is fully allocated. Profit can then be increased by adjusting the amount of leverage.
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The grid number should not be too high, and the profit per grid should not be too small. When setting the grid number, the system automatically calculates the estimated profit per grid. In my personal experience, using BTC as an example, when the estimated profit per grid is around 0.8%, this is a small grid, about 3% a medium grid, and about 5% a larger grid.
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Add a safety belt to your grid by setting stop loss.
❓ Other FAQs
1. What Trading Pairs Are Available in the Grid Trading?
The trading pairs currently supported on Spot Grid and Spot Infinity Grid are the same as BingX Spot trading.
The trading pairs supported on Futures Grid are the same as BingX Perpetual Futures. Trading fees, funding fee settlement, trading pairs, and supported leverage are the same as the rules for Perpetual Futures.
2. How Are Trading Fees Charged for Grid Trading?
The trading fees for Futures Grid are the same as BingX Perpetual Futures. For ordinary users, the Maker fee rate is 0.02%, and the Taker fee rate is 0.05%. VIP users can enjoy discounted fees. For more details, please see: https://support.bingx.com/hc/en-us/articles/360027240173
3. Is Copy Trading Supported?
Spot Grid currently supports Copy Trading.
Futures Grid and Spot Infinity Grid do not support Copy Trading yet, but stay tuned.
4. What Is the Minimum Investment Amount to Start Grid Trading?
The minimum investment amount for Spot Grid trading has been reduced to 10 USDT. Users only need 10 USDT to get started with Spot Grid.
5. Where Do the Recommended Parameters for the Grid Strategy Come From?
The recommended parameters are back-tested based on historical data and are for reference use only.
6. What Is Max. Price and Min. Price?
If the market price of a currency reaches this price due to fluctuation, the system will no longer execute any buy or sell orders. The lower price in the range (Min. Price) and the upper price in the range (Max. Price) together constitute the price range for a grid strategy.
Currently, both Futures Grid and Spot Grid require setting the Max. Price and the Min. Price, while Spot Infinity Grid only needs to set the Min. Price.
7. What Is Grid No.?
Both Spot Grid and Futures Grid require setting a grid number (Grid No.).
After you set the upper and lower ranges, the system will calculate the range from the lowest price to the highest price of your grid. The Grid No. refers to the number of grids in your strategy within this range. Roughly speaking: Profit/Grid = (Max. Price - Min. Price) / Grid No.
8. What Is the Profit Per Grid (Profit/Grid)? How Does It Relate to the Grid No.?
It's an estimated profit for each grid when one selling and buying is completed, minus fees.
For Spot Infinity Grid, the profit per grid can be set directly.
For Spot Grid and Futures Grid, the profit per grid is calculated indirectly. When grid intervals are equal, the more the grid number, the less the profit for each grid, yet the more sensitive the strategy is to fluctuations.
9. Is the Grid Currently an Arithmetic Grid or a Geometric Grid?
Spot Grid: Geometric Grid. The spread between each grid is equal.
Futures Grid: Geometric Grid. That is, each grid has an equal price difference.
Infinity Grid: Arithmetic Grid.
10. What Is the Total Profit?
Total profit = Cumulative Arbitrage profit + Unrealized PnL
11. What Is Arbitrage Profit? What Is Unrealized PnL? APY (Annual Percentage Yield)?
Arbitrage Profit: The difference between one sell order and one buy order.
Unrealized PnL: The profit or loss generated in pending orders and open positions. The formula is calculated by: (last price - filled price) * quantity held
APY (Annual Percentage Yield) = (Total profit / total investment) / days running * 365 days
12. What Happens When a Position Is Still Held When Closing the Grid Strategy?
Users can choose to either let the system close the position or close it themselves.
13. What Is the Order Placement Amount?
The total number of buy orders and sell orders, which is used to calculate the grid interval and grid buying and selling points.
Grid Interval = (Max. Price - Min. Price)/ Order Placement Amount.
Take BTC/USDT as an example, if the Max. Price is 12,000 USDT, the Min. Price is 8,000 USDT, and the order placement amount is 4, then the grid interval can be calculated as follows: (12,000 - 8,000)/4 = 1,000.
The buying or selling price points would be at 8000USDT/9000USDT/10000USDT/11000USDT/12000USDT.
📖 Grid Tutorial Collection
1. Spot Grid: The Ultimate Weapon to Profit from Volatility. Available for Copy Trading Too.
Text Tutorial: Spot Grid Guide: The Ultimate Weapon to Profit from Volatility. Available for Copy Trading Too
Basic Introduction:
One of the most classic and popular trading strategies, the Spot Grid trading bot is like a fishing net, using market fluctuations to buy low and sell high within the grid range to earn profits. Therefore, the Spot Grid bot is a great choice in a volatile market. The more volatile the market, the greater the room for bot arbitrage.
For example, if a user believes that BTC will fluctuate between 30,000-40,000 USDT in the near future, the user can choose to use the Spot Grid trading bot and set the Max. Price at 40,000 USDT and the Min. Price at 30,000 USDT. When the user starts a classic Spot Grid trading bot, it will continue to buy low and sell high within this range, and continue to arbitrage.
2. Futures Grid: Now Supports Long/Short Directions, Amplify Your Profits
Video Tutorial: BingX Tutorial | How to Get Started With Grid Trading
Basic Introduction:
Similar to Spot Grid, Futures Grid also aims to arbitrage continuously by buying low and selling high within a price range. However, Futures Grid has added new features built on the foundation of Spot Grid, which can help users obtain more profits.
First of all, Futures Grid supports shorting. If a user believes the market will fall, he/she can use Futures Grid to short and enjoy the grid income as the currency price declines. Secondly, Futures Grid also supports using leverage, which currently supports up to 20x leverage. Users can obtain greater returns through leverage, but risk and reward always go hand-in-hand. Users need to be aware of risk management when using leverage.
So, how to choose between the classic Spot Grid and Futures Grid? Generally speaking, the classic Spot Grid can meet most users' needs, but if a user wants to profit in the falling market or use leverage, Futures Grid would be the first choice.
But please note that the Futures Grid bot runs in the futures market, so there is a risk of forced liquidation. We advise users to start from Spot Grid and try out Futures Grid after getting to grips with the Spot Grid bot and learning how to manage risk effectively.
3. Spot Infinity Grid: Level Up Your Arbitrage and Earn Without Limits
Text Tutorial: The Essential Beginners Guide to “Spot Infinity Grid”. Level Up Your Arbitrage and Earn Without Limits
Video Tutorial: BingX Tutorial｜How to Get Started With Spot Infinity Grid
Basic Introduction:
Spot Infinity Grid is an advanced and derivative strategy version of Spot Grid, which is designed to avoid "missed opportunities" caused by rising market prices.
When a user runs the Spot Infinity Grid bot, as the market rises, it can ensure that the bot will never fall out of the set range while continuously "buying low and selling high" to help the user arbitrage. At the same time, Spot Infinity Grid ensures that the user holds onto the equivalent initial investment amount of currency throughout.
Take BTC/USDT as an example:
If you create an Infinity Grid strategy when the BTC is 20,000 USDT, and the profit per grid is set to 1%. When the price rises to the first grid, the BTC held will be worth 20,200 USDT. At this time, 200 USDT worth of BTC will be sold, and the amount of BTC held will be reduced, but the total value of USDT will have stayed at 20, 000 USDT even as the price continues to trend up. Similarly, BTC would be purchased if it were to fall in price, while the total value of BTC held would be maintained at 20,000 USDT.
🔊 Recent Updates
Long/Short Futures Grid is launched! Futures Grid now supports long and short directions.
The minimum investment amount for Spot Grid trading has been reduced to 10 USDT. Users only need 10 USDT to get started Spot Grid trading.