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What Is Spot Grid Trading? | Bitget Guides

What Is Spot Grid Trading? | Bitget Guides

Beginner
2023-10-17 | 5m

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What is spot grid trading?

Spot grid trading is a quantitative trading strategy that automatically buys low and sells high within a set price range. Spot grid trading is ideal for traders looking to profit in range-bound markets, without constant monitoring. Grid trading takes the emotion out of the equation.

Application of spot grids

Spot grid is all about selling high and buying low for short-term arbitrage, especially in volatile markets characterized by price fluctuations. It can guarantee profits within a specific price range.

Getting started with spot grid trading

Log in to your Bitget account. Go to Trade > Trading bots > Spot grid. Select your preferred trading pair.

Enter the highest and lowest prices for your grids.

Specify the number of grids.

The minimum investment amount will be calculated based on the number of grids.

Enter the investment amount.

Click create order.

You have now created a grid order.

Note that in grid trading, the grid spacing in arithmetic interval mode has the same price difference between orders.

In geometric interval mode, the grid spacing is based on a uniform price percentage difference between orders.

Grids with higher density require a larger investment amount.

Once the grids are set, a position is opened at the current price and buy and sell orders are placed for all grids.

When the price falls to the specified buy price of a grid, the corresponding buy order is filled

and a sell order is placed at a higher price.

Conversely, when the price pulls back, the sell order is filled and a buy order is placed.

This strategy allows the bot to sell high and buy low in a range-bound market.

For example, in BTC/USDT trading, After creating the bot, you can view your orders in Spot grid > Current Strategy. Select a spot grid bot, to view its details or terminate it

You can have the system close positions for you at market price, or close them manually.

All orders will be canceled when terminating the spot grid bot.

Spot grid bot tips

The bot will stop operating if the current price exceeds the highest or lowest price in the range.

If the price continues to run outside the range, you won't be able to get the corresponding grid profits either.

More grids increase the likelihood of fulfilling pending orders, but transaction fees may also rise, affecting your profit.

In case of unpredictable events like suspension or delisting of a coin, the corresponding grid bots will be automatically terminated.

Make informed decisions by carefully reading the Bitget spot grid product description and assessing your risk appetite.

With grid trading, profiting has never been easier.

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