Basic Concepts
1. What is an Arithmetic Grid?
CoinEx adopts an arithmetic grid mode as the Spot Grid strategy (for both auto-recommendation and manual creation).
(1) Definition: The price range between the lower and upper limits of the grid is evenly divided, so that the price difference between each grid is the same.
(2) The equation for the price difference between adjacent grids is: Spread = (Highest Price - Lowest Price) / Number of Grids
(3) Grid price calculation:
- Price 1 = Lowest Price
- Price 2 = Lowest Price + Spread
- Price 3 = Lowest Price + Spread * 2
- Price n = Lowest Price + Spread * (n - 1)
2. What is a Broken Grid?
A broken grid occurs when the market price breaks through the price range of the grid (i.e., above the highest price or below the lowest price) in a one-sided market.
When the grid breaks, the system will pause new order submission, while pending orders will remain active. In such a case, you can terminate the strategy or wait for the market to return to the grid price range. When the market price returns to the grid range, the grid strategy will be resumed.
Trading Operations
1. What type of market is suitable for Spot Grid strategies?
It is recommended to select markets with high trading volume, large price fluctuation ranges, and frequent trading activities.
2. What is the "Advanced Settings" used for when creating a grid?
Advanced settings are optional features for triggering the grid and setting take-profit/stop-loss orders. Users can customize these settings according to their needs:
(1) Grid Trigger Price: The grid strategy will only start when the market price reaches the pre-set trigger price. Once the strategy is running, this price cannot be changed.
(2) Stop-Loss Price: When the market price drops to the stop-loss price, the system will automatically sell the underlying asset to control losses. This price can be edited when the strategy is running.
(3) Take-Profit Price: When the market price rises to the take-profit price, the system will automatically sell the base asset to lock in profits. This price can also be edited when the strategy is running.
3. Will grid orders be executed smoothly during extreme market conditions?
(1) The execution of grid orders depends on market depth and order size. In extreme conditions, there may be situations where orders are not filled in time or are partially filled.
(2) To ensure the continuity of the grid strategy, the system has a mechanism for order submission, where the grid will place orders again according to the standard amount until it is filled.
4. How are revenues settled when a Spot Grid strategy is terminated?
When the grid strategy ends, all pending orders will be automatically canceled, and the grid revenues will be settled based on the current market price.
5. How are fees calculated for Spot Grid?
The trading fee for spot grids is calculated in the same way as for spot trading. CET cannot be used for fee deductions. For more details, please refer to Spot & Margin Fees.
6. Will fees exceed grid profits?
No. The system will validate the strategy before creating it. The strategy can only be created if the estimated grid profit exceeds the fees, ensuring that fees do not exceed profits.
7. If I only hold a single asset, can I create a spot grid?
Yes, but only if the asset you hold is the quote currency of the trading pair.
Take the ETH/USDT spot grid market as an example: USDT is the quote currency, and ETH is the base currency.
(1) If you hold USDT (the quote currency), you can create a spot grid using single-currency investment. The process is as follows:
- When the strategy starts, the system calculates the amount of ETH required for the initial sell orders based on the grid price range, the number of grids, and the opening price.
- The system then uses part of your USDT to buy ETH at the market price to initiate the position.
- Once the position is initiated, the system places sell orders with the purchased ETH and buy orders with the remaining USDT.
(2) If you only hold ETH (the base currency), you cannot create an ETH/USDT spot grid directly. You may sell ETH for USDT before creating a spot grid, or choose a trading pair where ETH is the quote currency.
Note: The actual execution price of the market order may experience slippage due to market fluctuations. The system will also reserve part of your funds for trading fees.
Risk Reminder
As a trading tool, Strategic Trading does not constitute financial or investment advice from CoinEx. Users can adjust, suspend, or end the strategy at any time according to current market trends and apply the strategy trading voluntarily. However, this may fail to obtain corresponding strategy benefits due to unreasonable strategy parameter settings or extreme market fluctuations.
All strategies are determined by the users themselves and are used at their own risk. CoinEx will not be responsible for any losses caused by the use of this service. Please reasonably evaluate your risk tolerance and make rational decisions after carefully reading the strategy trading guide.
🔗 Explore More