Contract Grid Strategy

1. What is a Contract Grid Strategy?

A contract grid strategy is an automated strategy for trading contracts within a specific price range by buying low and selling high. Users only need to set the maximum and minimum price of the range and the number of grids to divide it into, then start the strategy. The system calculates buy-low sell-high prices for each small grid and automatically places orders. As the market fluctuates, the strategy continuously buys low and sells high (or sells high and buys low) to earn profit from market volatility.

Currently, contract grids support all USDT contracts for all tokens.

2. Applicable Scenarios

The core of the contract grid is “oscillation arbitrage”, so it is suitable when the market is expected to oscillate for an extended period.

Additionally, contract grids can have certain long or short bias:

Long Grid: Only opens and closes long positions, suitable for oscillating upward markets.

Short Grid: Only opens and closes short positions, suitable for oscillating downward markets.

Neutral Grid: When the strategy starts, it opens short/close short above the market price and long/close long below the market price.

Users can choose the appropriate grid type based on their market forecast.

3. Creating a Contract Grid: Steps, Parameters, and Examples

3.1 Steps to Create

Open the APP and select Grid Trading.

Enter parameters on the trading page and confirm the investment amount to create the grid. (After creation, the capital is isolated from the trading account and used exclusively for the grid strategy.)

After creation, you can view and manage your grid strategy under Strategy at the bottom of the trading page.

During strategy operation, you can withdraw profits from the grid at any time or stop the grid.

3.2 Basic Settings

Required parameters:

Upper and lower price limits

Number of orders to place within the price range

Price difference between each grid order

Initial margin

If the current market price is outside the grid range, no positions will be opened initially.

The system calculates your initial margin based on the number of grids, leverage, and the price range you set. Note: denser grids require higher initial margin.

The notional value of each grid order must meet the minimum threshold. You can reduce the number of grids or increase the initial margin to meet this requirement.

3.3 Advanced Settings

Trigger Price:

The grid trading bot allows you to set a trigger price to control the market conditions for starting the strategy.

When the trigger price is reached, the system divides the asset price range into grids and places orders at each grid level. When the price drops, buy orders are executed and sell orders are placed at a higher grid; when the price rises, sell orders are executed and buy orders are placed at a lower grid. This allows profit from market fluctuations.

Stop Loss:

You can set stop-loss levels for your grid positions. If the price exceeds the stop-loss range, all positions will be closed to protect against significant losses.

4. Terms and Parameters

Creation Mode: Currently only manual creation is supported.

Manual Creation: Set parameters based on your own assessment of the oscillation range.

Grid Order Parameters:

Minimum Price: No orders will be placed if the market price is below this level.

Maximum Price: No orders will be placed if the market price is above this level.

Number of Grids: Number of small divisions within the oscillation range. Example: range 100-400, 3 grids → 100-200, 200-300, 300-400.

Leverage: Multiplier used in contract trading. Max currently is 50x.

Invested Margin: The amount allocated to the grid strategy. Maximum equals the transferable balance of the token in your trading account.

Arithmetic Grid: Equal price difference between adjacent grid orders (e.g., 1,2,3,4).

Geometric Grid: Equal ratio between adjacent grid orders (e.g., 1,2,4,8).

Take Profit / Stop Loss Price: Strategy stops and closes at market price when price reaches these levels.

Total Amount: Available funds after leverage. Total = Invested Margin × Leverage × Adjustment Factor (currently 0.9).

Estimated Liquidation Price (Long): Estimated liquidation price if all long positions in the grid are opened.

Estimated Liquidation Price (Short): Estimated liquidation price if all short positions in the grid are opened.

Estimated Liquidation Price (Order): Actual liquidation price of currently held positions.

Special Notes:

Cannot open a grid if there are existing full positions or orders.

Only one grid strategy per token. After opening, full or isolated margin orders can still be placed.

5. Example (ETH/USDT)

Long Grid Settings:

Min Price: 1,600 USDT

Max Price: 1,800 USDT

Number of Grids: 5

Grid Type: Arithmetic

Leverage: 2x

Invested Amount: 5,000 USDT

ETH/USDT Price at Strategy Creation: 1,672 USDT

Phase 1 – Initial Orders:

System calculates grid prices: 1,600; 1,640; 1,680; 1,720; 1,760; 1,800

Place buy orders with 2x leverage below market price

Place sell orders above market price

Phase 2 – Strategy Running:

If price drops below 1,640, the buy order executes and a sell order is automatically placed at the corresponding upper grid.

If price rises, the sell order executes and a buy order is placed at the lower grid.

This cycle repeats, generating profit from market oscillation.

Short Grid: similar, but opens short orders above market and closes below market.

Neutral Grid:

Opens buy orders below market price, sell orders above market price.

Strategy cycles similarly to long/short grid to profit from fluctuations.

6. Notes

If the market price exceeds the grid range, the system stops trading. Positions may incur floating losses or liquidation risk. It is recommended to set stop-loss levels at reasonable positions above/below the grid.

Funds allocated to the grid are isolated from the trading account; users should monitor total account risk.

If unexpected events occur (suspension, delisting), the grid strategy will stop automatically.

If floating losses exceed margin requirements, preventing funding fees or order placement, the grid strategy will be stopped by the system. Add margin promptly to maintain normal operation.