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What is Grid Trading? (1)

What is Grid Trading?

Grid trading is a strategy that automatically assists traders in buying low and selling high in a specific interval.

Grid trading is a strategy that automatically assists traders in buying low and selling high in a specific interval. The user sets the trading parameters in advance, and the bot will automatically trade according to the pre-designed parameters after opening. As long as the currency price does not break through the set range, the bot will continue to trade unless the user manually stops it.

If the currency price breaks through the price range, the grid trading will be suspended. When the currency price returns to the range price, the bot will continue to operate as originally set.

If the currency price reaches the take profit/stop loss price, the bot will perform take profit/stop loss operations and stop trading.

It should be noted that when the user is set up and started to execute, the bot will first automatically adjust the balance of the two currencies, and then the bot will place multiple buy and sell orders in the grid interval.

For example: if the user uses 1000USDT for BTC/USDT grid transactions, when the setup is completed and execution starts, the bot will first buy about 500USDT of BTC at the market price (this value will vary according to the interval price and the buying price), and then Place buy and sell orders for grid trading.

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Why we need grid trading?

Grid trading is a strategy that automatically assists traders to buy low and sell high in a specific interval. Crypto assets have the characteristics of large price fluctuations and 24-hour trading, which is very suitable for the use of grid trading. Using grid trading, the bot will execute the trading operations of selling high and buying low in strict accordance with the preset settings, helping traders make profits.

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