Grid trading glossary

A bot that splits a price range into steps and automatically buys and sells as the price reaches each step. It benefits from the price moving back and forth rather than from guessing a direction.

Example: If the price swings between 100 and 110, the bot keeps buying at 101 and selling at 102.

The lower and upper price the bot works between. While the price stays inside, the bot trades; outside, it opens no new trades.

Example: Lower 95, upper 105: when the price reaches 106, the bot waits.

How many equal parts the range is split into. More steps mean frequent trades with small profits; fewer steps mean rarer trades with bigger profits.

Example: 10 steps in a 95–105 range: a buy or sell line every 1 unit.

The gap between two steps, as a percent. When a buy is sold one step higher, roughly this much profit remains; fees are deducted from it.

Example: With a 0.5% step, a 100 USDT buy sold one step higher leaves about 0.50 USDT.

The money you set aside for a bot. The bot trades only with this amount and leaves the rest of your balance alone.

Example: You assign 200 USDT of a 1,000 USDT balance to a bot; 800 USDT stays free.

The coin amount bought and sold on each step. It comes from the investment and leverage and is the same on every step.

Example: Each step buys 0.01 ETH, and one step higher sells 0.01 ETH.

When on, the bot immediately buys enough coin to fill the steps above the price. When off, it starts empty and waits for the price to reach the steps.

Example: An Up bot buys coin for the 5 sell steps above the price as soon as it starts.

Which price move the bot works in favor of. There are four options: up, sideways, down and both ways.

Example: If you're unsure where the price will go, the sideways type needs no direction guess.

The side that benefits from a rising price. Coin is bought and sold higher. A sharp drop grows the loss.

Example: Coin bought at 100 and sold at 110: the difference is profit.

The side that benefits from a falling price. Coin is sold first and bought back lower. A sharp rise grows the loss.

Example: Sold at 110 and bought back at 100: the difference is profit.

A grid that buys on the steps below the price and sells on those above. It trades as the price moves back and forth and needs no direction guess.

Example: With the price at 100, it waits to buy at 99, 98, 97 and sell at 101, 102, 103.

A grid that runs the up and down sides together on every step. It aims to balance direction risk; the investment is split between both sides.

Example: When the price rises the Short side shows a loss and the Long side a gain, and the other way round.

How many times your money the position size is. Profit and loss grow at the same multiple. 1x means no leverage.

Example: 100 USDT at 5x opens a 500 USDT position; a 10% move against you loses 50 USDT.

In a leveraged trade, when the collateral runs out the exchange closes the position itself and the collateral is lost. Lower leverage moves this price further away.

Example: At 10x, a move of about 10% against you force-closes the position.

A small fee exchanged between the long and short sides of the futures market at set intervals (usually every 8 hours). When the rate is positive, Long pays and Short receives.

Example: At a 0.01% rate on a 1,000 USDT position, 0.10 USDT changes hands each time.

The fee the exchange charges on every buy and sell. If the step is too narrow, fees can eat most of the profit.

Example: At a 0.05% fee, a 100 USDT trade pays 0.05 USDT.

An order filling at a slightly different price than expected. It is larger on thin (lightly traded) pairs.

Example: You want to buy at 100 but it fills at 100.08.

When the total profit reaches the amount you set, the bot closes itself and locks in the profit.

Example: Take profit 20 USDT: the bot closes once its total profit reaches 20 USDT.

When the total loss reaches the amount you set, the bot closes itself so the loss can't grow.

Example: Stop loss 30 USDT: the bot closes when the loss hits 30 USDT.

The bot closes when the price reaches the lower or upper level you set.

Example: Stop if the price falls below 90 or rises above 115.

When the price leaves the range, the range moves with it so the bot keeps working. Shifting stops at the limit price you set.

Example: Once the price passes 105, the range moves to 96–106, then 97–107.

Profit from completed buy-sell trades. Fees are already deducted, and it stays even if the price comes back.

Example: The bot bought and sold 30 times at 0.40 USDT each: grid profit is 12 USDT.

Profit or loss at the current price on coins held but not yet sold. It changes with the price and becomes real when closed.

Example: Coin bought at 100 is now at 97: it shows -3 until sold.

Grid profit + open position PnL + funding. This is the result you'd get if you closed the bot now.

Example: Grid profit 12, open position -5, funding -0.5: total 6.5 USDT.

Total profit as a share of the investment.

Example: 5 USDT total profit on a 100 USDT investment: a 5% return.

Shows what the return so far would be if it continued at the same pace for a year. It misleads over short periods and is not a forecast.

Example: 1% in a week shows roughly 52% a year, but that may not last.

Shows what would have happened if the bot had run on past prices with the same settings. Past results don't guarantee the future.

Example: How many trades this range and step count would have made in the last 30 days, and the total.