Grid Trading Glossary

Bitgetters,

Common terms

Strategy trading: an automatic trading tool provided by Bitget to help users automate the placement and execution of orders and adopt different strategies to buy low and sell high within a certain range or invest at specified prices or specified intervals, by setting parameters such as price range, take profit and stop loss. It currently includes grid trading and DCA strategy, among others.

Grid trading: a free strategy trading tool provided by Bitget to help users earn profit by allowing them to automatically buy low and sell high within a pre-determined price range. With price keep going up and down within the range, users can arbitrage repeatedly from the process. The strategy is suitable for volatile markets. Bitget now supports both spot and futures grid trading.

Price range: formed by the pre-determined highest price and lowest price. The strategy bot will help users to buy low and sell high as price fluctuates within the scope.

Number of grids: also called “grid number”, by which the price range is equally divided into corresponding shares for the strategy to place orders.

AI Strategy: a suggested price range generated from a back-testing of history data. It should only be used as a reference.Manual Creation: users can determine and set the highest price, the lowest price and the number of grids at their own discretion.

Trigger price: grid trading will be enabled when the market price reaches this preset price. Take-profit/Stop-loss price: the strategy will be terminated when market price reaches this preset price.

Initial limit price: used to control the deviation of the average execution price and the price at the time of placing the order within a certain percentage range. (Due to the high volatility of the crypto market, when traders are trading, the final execution price is often inconsistent with the price when the order is placed. At this time, you can control the slippage by using the initial limit price)

Arithmetic mode: each grid has an equal price difference (for example, 1, 2, 3, 4).

Geometric mode: each grid has an equal price difference ratio (for example, 1, 2, 4, 8).

Profit per grid: price difference of a single grid *min (the purchase amount within the grid space, the selling amount within the grid space)

Grid profit: the sum of the profit of each grid.

Floating PNL: (current price - average buying price) * current position size

Total profits: Grid profit + Floating PnL

APY: Total profits / initial margin / number of operating days * 365

Available funds: capital in the account available for grid trading.

Investment amount: funds invested when the grid strategy is enabled.

Spot Grid Trading

Normal grid: buy low and sell high to earn more on the stablecoin. It works best in a volatile market where prices are rising.

Reverse grid: invest in the coin and sell it out before buying it back. It works best in a volatile market where prices are dropping, allowing traders to earn more from arbitrage.

Sell at termination: when the normal grid trading strategy is terminated, base currency bought by the strategy will be sold to the stablecoin.

Buy at termination: when the reverse grid trading strategy is terminated, stablecoin bought by the strategy will be sold to the base currency.

Futures Grid Trading

Long grid: enter long positions upon creation and take profits by closing long positions when the price rises and open long positions when the price dip. It is suitable for volatile market conditions where prices are rising.

Short grid: enter short positions upon creation and take profits by closing short positions when the price dips and open short positions when the price rises. It is suitable for volatile market conditions where prices are dropping.

Cross mode: under cross margin, all available funds in the futures account are regarded as available margin. In general, the Cross Margin mode is superior in the ability to resist losses and the convenience of operation and position calculation. However, once liquidated, all assets within the futures account will be lost.

Isolated mode: hedge mode is supported under isolated margin. The risk of short positions and long positions will be calculated separately. When liquidated, only the margin of the particular position will be lost. If the positions are closed by the user, losses and profits of each short position and long position will be credited into the margin of corresponding positions.

Close at termination: when the grid strategy is terminated, the corresponding futures position will be closed.