• Language & Exchange Rate Switch
  • Preference Settings
    Rise/fall colour
    Start-End Time of the Change
Web3 Exchange
Announcement
Activity
Bi-Weekly Report
Institutional&VIP
Gate Learn
Delisted
Gate Wealth
New Listed
Gate Charity
Finance
Trade Competion
Deposit&Withdrawal
ETF
Live
Gate Card
rename
Announcements Guide to Margin Grid
Guide to Margin Grid
2021-09-09 08:58:58 UTC 159165 Read
lv

1.What is margin grid?

Margin grid is an upgraded version of the spot grid. It combines the spot grid strategy with margin trading and amplifies the invested principal to obtain higher returns in grid trading through margin lending. Similar to the spot grid, by setting the price range, the number of grids, etc., funds are divided into multiple grids which will be used to buy in when the price of the base currency falls and to sell out when the price rises, grid by grid. The strategy profits from repeated selling high and buying low.

2.Which type of investors should consider using margin grid?

Investors who want to use leverage to amplify profits on the basis of grid transactions can conduct margin trading through margin grid strategies. Investors do not need to watch the market because the system automatically trades and arbitrages according to the parameters set by users, ensuring steady returns even in volatile markets. Margin grid solves the problem of amplifying returns in margin trading.

Investors can choose "Short" when setting the parameters for trading in bearish markets. The demand for making profits when the price goes down can still be fulfilled by quantitative strategies.

3.Where to set up a margin grid strategy?

Navigation bar - "Copy Trading "-"Strategy Bot"- "Create A Strategy"-"Recommend"-"-"Margin Grid"-"Create Strategy". Then choose the trading pair, set up the parameters and click on "Create". As shown in the figure below

4.Parameters in "Margin Grid"


"Long", "Short": Depends on the investor's prediction of the market trend. If the investor predicts the price to go up, choose "Long", if the investor predicts the price to go down, choose "Short".

Lower limit price:The lowest buying price, which if the latest market price is lower than, no purchase orders will be placed. The lower limit price can not be executed as the selling price in the strategy.

Upper limit price: The highest selling price, which if the latest market price is higher than, no selling orders will be placed. The upper limit price cannot be executed as the purchase price in the strategy.

Number of grids: The number of executed grids, varying from 2 to 200.

Arithmetic:The price difference in each grid is equal. Common difference = (upper limit price - lower limit price)/(number of grids - 1)

Geometric: The ratio of the price in each grid is equal.

img

Number of grids = N Upper limit price = U Lower limit price = L

Base currency buy/sell qty per grid: The buy/sell quantity of the chosen currency in each grid.

Increment per grid: Disabled by default. When enabled, the buy/sell quantity in each grid increases per quantity or pro rata from the previous grid. img

Example: The base currency buy/sell quantity per grid is 1 and the increment per grid is 2, which means the first grid can buy/sell 1BTC, the second grid 1+2=3BTC, the third grid 1+2+2=5BTC......

Leverage ratio: Investors can choose the leverage ratio. The higher the leverage ratio, the lower the minimum investment amount. Please be cautious when setting the leverage ratio, for risks and profits coexist.

Reference interest rate: The reference interest rate of funds the margin grid strategy borrows.

Stop-loss price: (Long) When the market price is less than or equal to this price, stop-loss will be triggered. The stop-loss price must be lower than the lower limit price; (Short) When the market price is greater than or equal to this price, stop-loss will be triggered. The stop-loss price must be higher than the upper limit price.

Take-profit price:

(Long) When the market price is greater than or equal to this price, take-profit will be triggered. The take-profit price must be higher than the upper limit price; (Short) When the market price is less than or equal to this price, take-profit will be triggered. The take-profit price must be less than the lower limit price

Trigger price of the strategy: (Long) Only when the last price is less than or equal to the trigger price, the grids will be executed. Trigger price should be less than the last price while being between the lowest and highest price in the grids; (Short) Only when the last price is greater than or equal to the trigger price, the grids will be executed. Trigger price should be greater than the last price while being between the lowest and highest price in the grids.

Sell (base currency) when it terminates: When enabled, your holdings will be used to buy USDT at market price when the strategy terminates.


Gate.io reserves the final right to interpret the product.

Share Posts
Related Articles
Gate.io Copy Trading: Trade With Lead Traders Who Survive the Black Swan Crisis; Win & Share 20,000U... [Lead Trader] How Can Lead Traders Level Up? Gate.io Copy Trading Triple Rewards: Win Up to 400 USDT Individual Rewards! Guide to Futures Martingale Strategy Percentage Channel Strategy Instructions on Bots Trial Funds
Language and Region
Exchange Rate
Go to Gate.TR?
Gate.TR is online now.
You can click and go to Gate.TR or stay at Gate.io.