1. What is grid trading?
BiKing Grid Trading is a low-frequency strategic trading based on perpetual futures, which uses price fluctuations to achieve profits by establishing a series of price ranges. The core idea of grid trading is to trade within a certain price range, buy when the price is lower than a certain set value, and sell when the price is higher than a certain set value, thereby making a profit.
In grid trading, traders can set a price range and establish a series of buy and sell orders within that price range, forming a grid-like structure. For example, if the current market price is US$10,000, traders can set a price range of US$1,000 and establish 10 buy orders at different prices such as 9,000, 8,000, and 7,000. They can also create 10 sell orders at 9,000, 8,000, and 7,000. Place orders at different prices such as 11000, 12000, 13000, etc. When prices fluctuate within this range, traders can gradually buy or sell, thereby realizing profits.
In the case of long orders, gradually sell when the price rises within the grid range, and gradually buy when the price falls.
In the case of a short order, gradually buy when the price rises and sell gradually when the price falls within the grid range.
Contract Grid VS Spot VS Contract
Support opening direction: support long or short positions, no fear of bears or bulls
Suitable market conditions: A volatile falling or volatile rising market is best
Fund utilization rate: ★★★
Risk attributes: lower risk than contract
Profit attributes: controllable risks, considerable returns
Supported position opening direction: only long position supported
Suitable market conditions: shock and rise
Fund utilization rate: ★★★★
Risk attributes: low risk
Profitability attributes: The income is lower than the contract grid
Support long or short selling
Fund utilization rate: ★
Risk attribute: high risk
Profit attributes: high risk, high return
2. Advantages of grid trading
Suitable for volatile market conditions: Grid trading is suitable for situations where market prices fluctuate within a certain range. Under such market conditions, grid trading can achieve profits by buying high and selling low without predicting the market direction.
Improve the trading efficiency of idle funds: In volatile market conditions, many traders will leave funds idle in their accounts, and grid trading can help traders improve the utilization rate of funds and use idle funds for transactions.
Automatic trading: Grid trading can automatically execute trading strategies 24 hours a day without manual intervention and can conduct transactions around the clock. This can reduce the pressure on traders while also ensuring the efficiency and accuracy of transactions.
Risk control: Grid trading can control risks by setting the price range and transaction quantity. When the price exceeds the set price range, grid trading can automatically close positions or stop trading, thereby avoiding further losses.
Stable earnings: In volatile market conditions, grid trading can achieve stable profits by buying high and selling low without predicting the market direction, which ensures the stability and reliability of earnings.
3. Fund management of grid trading
Grid trading requires a separate margin account, and users need to transfer a certain amount of funds from the contract account to the margin account as a margin to support the operation of grid trading.
Users need to set the grid price, quantity and margin reasonably to ensure the effectiveness of transactions and risk control. Generally speaking, the grid price should be set based on market trends and the user's trading plan, the number of transactions should be determined based on the amount of funds and trading goals, and the margin should be sufficient to support trading operations and prevent losses.
When conducting grid trading, users need to constantly monitor market trends, adjust grid parameters to adapt to market changes, and improve the success rate and profitability of transactions.
In grid trading, users need to operate with caution and control risks. Grid trading is an automated perpetual contract transaction. The rate is based on the perpetual contract rate. Please refer to "BiKing Perpetual Contract Parameter Details and Rate Description"
4. Instructions for Grid Trading
Users can trade using grid trading strategies by setting trading parameters. The operation of grid trading is determined by the parameters set by the user. Any parameter selection and investment decision are made by the user. BiKing does not make any decision on the applicability of grid trading parameters, nor does it make any profit on the grid trading strategy. representation or warranty. BiKing does not bear any risks related to grid trading strategies, and all risks are borne by users themselves. You should understand the risks associated with grid trading and make your own assessment of whether this feature is suitable for you.
For grid operation teaching, please click: "BiKing Grid Operation Tutorial"