What Is Futures Grid Trading | Binance Support

grid trading is a trade bot that automates the bribe and betray of Futures contracts. It is designed to place orders in the market at preset intervals within a configured price range. grid trade is when orders are placed above and below a sic price, creating a grid of orders at incrementally increasing and decreasing prices. In this room, it constructs a deal grid. For exemplar, a trader could place BTC buy orders at every 1,000 USDT below the market price and set sell orders at every 1,000 USDT above the marketplace price to take advantage of ranging conditions. grid trade performs best in volatile and crabwise markets when prices fluctuate in a given image. This technique attempts to make profits on little price changes. The more grids you include, the greater the frequency of trades will be. however, it comes with an expense as the profit you make from each order is lower. frankincense, it is a tradeoff between making little profits from many trades, versus a scheme with lower frequency but generates a bigger profit per order.

How does Binance Grid Trading work?

Binance Grid trade now supports USDⓈ-M and COIN-M Futures. You can customize and set grid parameters to determine the grid ‘s upper and lower limits and the number of grids. Once the grid is created, the system mechanically buys or sells orders at preset prices. Let ’ s understand how it works. You expect Bitcoin to hover in a monetary value compass between 50,000 USDT and 60,000 USDT in the following 24 hours. In this case, you could set up a grid trading system to trade within this bode range. On the grid trading control panel, you could set parameters of the scheme, including :

  • The upper and lower boundaries of the price range;
  • The number of orders to be placed within the configured price range; and
  • The width between each buy and sell limit order.

In this scenario, as the BTC price falls toward 55,000 USDT, the grid trade bot will accumulate buy positions on the way down at a lower-than-market price. As the price recovers, the bot will sell on the means up at a higher-than-market price. This scheme basically attempts to profit from price reversions. Risk Warning Grid trading as a strategic trading tool should not be regarded as financial or investment advice from Binance. Grid trading is used at your discretion and at your own risk. Binance will not be liable to you for any loss that might arise from your use of the feature. It is recommended that users should read and fully understand the Grid Trading tutorial and make risk control and trade rationally within their financial ability.

How to set up a Grid Trading strategy?

[Derivatives][Binance Futures Overview]. Click [Strategy Trading] [Futures Grid]. 1. Log in to your Binance bill and go to. Click If you ’ re using the Binance App :

  • To start trading using the USDⓈ-M Futures Grid, tap [Futures] [USDⓈ-M Futures]. Then, tap […] and select [Strategy Trading] [Grid Trading].
  • To start trading using the COIN-M Futures Grid, tap [Futures] [COIN-M Futures]. Then, tap […] and select [Strategy Trading] [Grid Trading].

2. Select a symbol to execute the scheme and set the grid parameters. Select the power system guidance ( Long, Short, or Neutral ), the range, the number of grids, and order size. then suction stop [Create] to confirm. For example, the screenshot below shows the steps for creating USDⓈ-M Futures Grids . Please note that the pursue situations may cause grid creation to fail :

  • When you are already running a grid trading on the selected symbol;
  • When you have open orders or positions on the selected symbol;
  • When you are under hedge position mode, please adjust to one-way mode;
  • When you exceed the maximum grid limit. Please note that you can only have 10 working and limit-triggered grids simultaneously (applies to both USDⓈ-M Futures and COIN-M Futures).

Grid Trading Mechanism

Let ’ s use the USDⓈ-M Futures BTCUSDT Perpetual condense as an example to understand the process for grid trade .

  • Setting a Grid Trigger (optional)
  • Defining the initial structure of your grid strategy
  • Initial grid creation process
  • Grid Update
  • Setting a Stop Trigger (optional)
  • Order Cancellation

Setting a Grid Trigger (optional) For parameters # 10 & # 11 : You can place your power system limit orders immediately or trigger them when the market price reaches a certain value. The grid orders will be triggered when the marketplace price ( last price or Mark price ) rises above or falls below the trip price you enter . Defining the initial structure of grid strategy For parameters # 1, # 2, # 3, # 4, and # 6 : You can determine a series of price levels according to the latest market price ( buy, sell, mid-price ), and place sell limit orders at a monetary value higher than the market price, and a buy limit arrange at a price lower than the market price. After that, you can wait for the limit orders to be triggered and executed. Please note that the number of limit orders is the issue of grids +1 at the prison term of initial construction as no positions are held. The order nearest to the latest market price is the initial open holy order, waiting to be executed . Initial grid creation process For neutral grids, the strategy will begin with no initial position. The initial stead will be triggered when the marketplace trades beyond the dear price point after the initial construction. Example: Suppose you have set your scheme parameters as such :

  • Contract: BTCUSDT Perpetual
  • Lower price: 20,000 USDT
  • Upper price: 45,000 USDT
  • Number of grids: 5
  • Mode: Arithmetic

The price distribution will be as follows : 20,000 USDT, 25,000 USDT, 30,000 USDT, 35,000 USDT, 40,000 USDT, 45,000 USDT initial sell orders for the achromatic grid will be placed above the stream market price. meanwhile, the buy orders will be populated below the current market price. note that the price nearest to the grocery store price would be excluded. In this scenario, the initial grid limit orders will be populated as such :

Direction Price
Sell 45,000 USDT
Sell 40,000 USDT
Buy 30,000 USDT
Buy 25,000 USDT
Buy 20,000 USDT

Grid Update Grid update means that every time a price point is touched, i.e., a limit rate is filled, the grid limit order will update in time. The price of the most recently executed orderliness will constantly be the one that is switched off, meaning it will not trigger any order. Buy or sell limit orders are then filled in again according to the fixed parameters to maintain the number of limit orders in the power system. For exemplar, the initial market price is 10,010 USDT, and the grid terminus ad quem price at each unit is :

price steering
10,200 USDT Sell
10,100 USDT Sell
10,000 USDT Buy
9,900 USDT Buy
9,800 USDT Buy

Assuming that the price drops to 10,000 USDT and the bribe order ( the initial open status ) is executed, the grid restrict orders will become :

monetary value steering
10,200 USDT Sell
10,100 USDT Sell
10,000 USDT
9,900 USDT Buy
9,800 USDT Buy

Let ’ s assume the price then rises to 10,100 USDT, triggering the performance of the 10,100 USDT sell decree. The grid specify orders will be updated as follows :

price direction
10,200 USDT Sell
10,100 USDT
10,000 USDT Buy
9,900 USDT Buy
9,800 USDT Buy

If after that the price drops to 9,900 USDT, the two buy orders ( 10,000 USDT and 9,900 USDT ) are then executed, and the grid limit orders will be subsequently updated as follows :

price commission
10,200 USDT Sell
10,100 USDT Sell
10,000 USDT Sell
9,900 USDT
9,800 USDT Buy

And so on. 5. Setting a Stop Trigger (optional) For parameter # 12 : You can manually terminate grid operation or set Stop Trigger. Stop trigger : When the grocery store price rises above Stop_upper_limit or falls below Stop_lower_limit, i, the market is no long following a swinging course, the grid will stop its operation. 6. Order Cancellation For parameters # 13 & # 14 : You can choose to cancel all orders and close all positions manually or automatically after the grid has been stopped. When the ‘cancel all orders ‘ on check is enabled, the system will automatically cancel all the unfilled orders for the symbol when the grid is stopped. When the close all positions on stop consonant is enabled, the system will mechanically close all exposed positions at marketplace price for the symbol when the grid is stopped. Please note that during grid operation, the come scenarios will cause the grid to terminate :

  • Manually terminate the grid;
  • Insufficient margin causes some positions to be liquidated or fail to place orders;
  • Manually cancel some or all grid limit orders;
  • Manually close some or all grid positions;
  • When the delivery contract is delivered, the product no longer exists and the grid strategy will be automatically stopped. During the delivery process, the system will automatically remove your limit orders and settle open positions.

The system will notify you if a power system is presently in operation. For exercise, the commend grid trade leverage is below 20x. If the leverage continues to be higher than 20x, you will see a irregular admonisher to lower the leverage .

How to set up the Grid Trading parameters?

Choose the contract on which the trade bot will be deployed .

1. Cross/Isolated Margin Mode and Leverage

Determine the type of margin for the power system deal stead : Isolated or Cross margin modes .

  • Isolated margin mode: Margin is independent for each trading pair
  • Cross margin mode: Margin is shared between all trading pairs in the Futures account

then, adjust the leverage. leverage magnifies both gains and losses. With leverage, you can magnify relatively modest monetary value movements to potentially create profits. however, leverage is a double-edged sword, please use it prudently .

2. Lower/Upper Price

* Cannot be modified after placing the grid order Set the lower monetary value and the upper monetary value of the grid. If the highest or the lowest grid is exceeded, no more positions will be opened. For model, if the current BTCUSDT ageless Futures price is 48,000 USDT and you expect the price will fall when it goes above 49,000 USDT. In this case, you can set the upper price to 49,000 USDT. After the price reaches 49,000 USDT, the power system will no longer open positions .

3. Arithmetic/Geometric Mode

* Cannot be modified after placing the grid order Arithmetic: Each grid has an equal price dispute. The arithmetical grid divides the price range from grid_lower_limit to grid_upper_limit into grid_count by an adequate price difference. The monetary value deviation of each grid is : price_diff = ( grid_upper_limit – grid_lower_limit ) / grid_count then it constructed a series of price intervals : price_1 = grid_lower_limit price_2 = grid_lower_limit + price_diff price_3 = grid_lower_limit + price_diff * 2 … price_n = grid_lower_limit + price_diff * ( n-1 ) At grid_upper_limit, normality = grid_count exercise : arithmetic price_diff = 100 : 1,000, 1,100, 1,200, 1,300, 1,400, … ( the next price is 100 higher than the previous one ) Geometric: Each grid has an equal price deviation ratio. The geometric grid divides the price range from grid_lower_limit to grid_upper_limit into grid_count by an adequate price ratio.

The price proportion of each grid is : price_ratio = ( grid_upper_limit / grid_lower_limit ) ^ ( 1/grid_count ) The price difference of each grid is : price_diff_percentage = ( ( grid_upper_limit / grid_lower_limit ) ^ ( 1/grid_count ) – 1 ) * 100 % then it constructed a series of price intervals : price_1 = grid_lower_limit price_2 = grid_lower_limit * price_ratio price_3 = grid_lower_limit * price_ratio ^ 2 … price_n = grid_lower_limit * price_ratio ^ ( n-1 ) At grid_upper_limit, normality = grid_count model : Geometric power system price_diff_percentage = 10 % : 1,000, 1,100, 1,210, 1,331, 1,464.1, … ( the next price is 10 % higher than the former one )

4. Grids (i.e., number of limit orders)

* Cannot be modified after placing the grid order

  • Minimum: 2
  • Maximum: 149

note : price difference can not be lower than the tick size, differently you need to adjust the Grid_count or Grid upper/lower terminus ad quem. How to calculate? 1 ). arithmetic grid, price_diff = ( grid_upper_limit – grid_lower_limit ) /gridCount < tickSize 2 ). Geometric grid, min_price_diff = grid_lower_limit * price_ratio < tickSize, price_ratio = ( grid_upper_limit / grid_lower_limit ) ^ ( 1/grid_count )

5. Profit/Grid (After deducting the trading fees)

If the profit/grid is less than the manufacturer commission, you will be notified that the total grid profit may not be able to cover trade fees. How to calculate? ( The profit/grid display is for address only ) 1). Arithmetic grid vitamin d = ( grid_upper_limit – grid_lower_limit ) / grid_count c = TradingFeeRate ( your stream manufacturer fee rate ) profit_per_grid_lower = ( grid_upper_limit * ( 1-c ) ) / ( grid_upper_limit-d ) – 1 – carbon profit_per_grid_higher = ( 1-c ) * five hundred / grid_lower_limit-2c Example : Price interval = 1,000 – 2,000, Grid_count = 10, Commission = 0.1 % Price difference of each power system is = ( 2000-1000 ) / 10 = 100 profit_per_grid_lower = ( 2000 * ( 1-0.1 % ) ) / ( 2000-100 ) – 1 – 0.1 % = 5.05 % profit_per_grid_higher = ( 1-0.1 % ) * 100 / 1,000 – 2 * 0.1 % = 9.79 % 2). Geometric grid roentgen = ( grid_upper_limit/grid_lower_limit ) ^ ( 1/grid_count) c =TradingFeeRate ( your stream godhead fee rate ) profit_per_grid_geo = ( 1-c ) * r – 1 – c Example : Price interval = 1,000 – 2,000, Grid_count = 10, Commission = 0.1 % Price ratio of each grid is = ( 2,000 – 1,000 ) ^ ( 1/10 ) = 107.18 % Profit/grid = ( 1 – 0.1 % ) * 107.18 % – 1 – 0.1 % = 6.97 %

6. Initial Margin

* Cannot be modified after placing the grid order initial margin = initial_value / leverage You can adjust the share of the investable sum up to 100 % ( initial margin = share * allowance proportion ). Please note that it must be within the interval between the min_initial_margin and the margin libra. For USDⓈ-M Futures Grid

  • Direction Neutral

min_initial_margin= minQty * summarize ( price ) / ( leverage * adjust_coef) minQty : the minimal grid_qty

  • Direction Long/Short Grid

“ assumed price ” is defined as per the follow convention : assuming_price ( BUY ) = price /assuming_price ( SELL ) = soap ( mark_price, price ) min_initial_margin = summarize ( min grid qty * assuming price + leverage * minute grid qty * abs { min [ 0, side * ( notice price – price ) ] } ) / ( leverage * adjust_coef ) * If you have set a gun trigger price, the grade price should be replaced by the gun trigger price. For COIN-M Futures Grid

  • Direction Neutral

min_initial_margin = min power system qty * sum ( contract_multiplier / price ) / ( leverage * adjust_coef )

  • Direction Long/Short Grid

Define assuming monetary value : assuming_price ( BUY ) = price / assuming_price ( SELL ) = soap ( mark_price, price ) min_initial_margin = minute grid qty * sum ( contract_multiplier / ( leverage * assuming price ) + contract_multiplier * abs { min [ 0, side * ( 1 / Order ‘s Price – 1 / marker price ) ] } ) / adjust_coef * If you have set a trigger price, the distinguish price should be replaced by the trigger price. * Currently, the adjust_coe has defaulted to 0.9. It will be adjusted according to market conditions .

7. Total Investment

* Cannot be modified after placing the grid order
Total investment = Initial margin * leverage After setting the leverage :

  • minimum Initial_value = sum (price * minQty)
  • maximum Initial_value = margin * leverage

8. Qty/Order

For USDⓈ-M Futures Grid, direction Neutral : grid_qty = adjust_coef * initial_margin * leverage / summarize ( price ) For COIN-M Futures Grid, direction Neutral : grid qty = adjust_coef * initial_margin * leverage / kernel ( 1 / monetary value )

9. Available Margin Balance

The margin balance of your USDⓈ-M or COIN-M Futures account .

10. Trigger_type: Last Price / Mark Price

*Optional, can be modified before the grid is triggered 1 ). Grid trigger type : When the last price or the market price you choose reaches the trigger price, the grid will start run. 2 ). Stop trigger type : When the last monetary value or the commercialize monetary value reaches the exceed or bed check price, the grid will be stopped .

11. Trigger_price

*Optional, can be modified after placing the grid order Your grid regulate will be triggered when the death price or the commemorate price rises above or falls below the gun trigger price you set .

12. Stop_upper_limit (Stop-loss top price) / Stop_lower_limit (Stop-loss bottom price)

*Optional, can be modified after placing the grid order 1 ). Stop_upper_limit The stop-loss top price should be higher than the upper price, the final price, and the gun trigger price. When the latest marketplace monetary value reaches the Stop_upper_limit, the grid will stop cultivate. 2 ). Stop_lower_limit The stop-loss bottom price should be lower than the lower price, the last monetary value, and the trigger price. When the latest market price reaches the Stop_lower_limit, the grid will stop work .

13. Cancel All Orders on Stop

*Optional, can be modified after placing the grid order You can enable this routine to automatically cancel all unfilled orders of the symbol when the grid stops .

14. Close All Positions on Stop

*Optional, can be modified after placing the grid order You can enable this function to mechanically close all outdoors positions of the symbol at the grocery store price when the power system stops. *Please note that the above parameter setting suggestions are for reference only. Futures trading carries a substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance could be liquidated in the event of extreme price movement. Binance shall not be liable for any of your losses.

How to calculate the current margin?

position_notional = Latest_Mark_Price * size position_notional_value = abdominal ( position fanciful ) confront notional = soap ( abdominal ( position_notional + open arrange ‘s bid_notional ), abs ( position_notional – open order ‘s ask_notional ) ) * Abs : absolute rate open order ‘s ask_notional = askNotional clear order ‘s bid_notional = bidNotional

  • Crossed margin:

stream gross profit = present conceptional / stream leverage

  • Isolated margin:

current gross profit = ( present conceptional – position_notional_value ) / leverage + isolatedWalletBalance

How to check my grid details?

clock The prison term when the power system was created
symbol Click on the leverage adjacent to the symbol to adjust the grid leverage
initial margin gross profit at the time of grid creation
total profit full net income = Grid Profit + Unrealized PnL Notes : 1. If the [ Close all positions on hold on ] function is enabled with open positions under the grid, all positions will be closed at market price after the grid stops. The PnL of the close up positions are not included in the grid profit. 2. fund fees incurred when the scheme is working are not included in the grid net income .
sum Profit ( % ) ROI = Total Profit / initial_margin * 100 %
Realized profit Realized profit and loss from grid trade is the accumulative profits of all completed orders. For arithmetical grid, total profit = Number of Completed Orders * Profit/Grid – sum Commission
Unrealized PnL unfulfilled profit and passing on open orders calculated based on Mark Price / last Price, and return on fairness share
duration The time the grid has been in operation since the power system is created
Liq. price Please refer to the calculation of the liquidation price for USDⓈ-M Futures contracts and COIN-M Futures contracts
Grid Status
  • New: The grid is created, but not triggered
  • Working: The grid is triggered
  • Adjust margin

Adjust margin is only available in the Isolated Margin Mode .

  • Grid Termination

You can click [End] under [Action] to stop the grid. You can besides choose to cancel unfilled orders and close all positions manually or automatically after the power system is stopped . When the [ Cancel all orders on stop ] function is enabled, the system will automatically cancel all unfilled orders of that symbol when the power system is stopped. When the [ Close all positions on end ] affair is enabled, the system will mechanically close all open positions of the symbol at the grocery store monetary value when the grid is stopped .

  • Active Order

You can see all your open orders, including partially filled orders .

  • Completed orders

You can see a compendious of all completed orders. Each transaction consists of a pair of corresponding bribe and sell orders. Profits are calculated based on each couple of match bribe and sell orders. Please note that the BNB perpetration fee is converted into margin assets using the real-time exchange rate at the time of the transaction .

How to check my grid history?

Go to the [History] tab to check your grid arrange history and view grid details.

Grids Status Canceled : You manually terminated the grid Expired : The grid was terminated due to the reasons below :

  • The order failed to place;
  • The grid strategy was manually terminated;
  • You manually placed or canceled an order, which caused the grid to stop;
  • The market price has reached the stop-loss price of the grid strategy;
  • The position has been liquidated;
  • The maximum number of open orders has been reached;
  • Insufficient margin account balance;
  • The order price is above the limit price;
  • The market is closed or paused;
  • A position failed to close or was unable to fill;
  • The maximum allowable notional value at the current leverage level has been exceeded.

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