Crypto is a market that never closes and undergoes constant and significant fluctuations.
Grid trading is a tool that perfectly adapts to the unique characteristics of the crypto market, which can help you arbitrage in a volatile market.
How to quickly get started with "Spot Infinity Grid", a more advanced version of "Spot Grid", to seize the opportunities present in a volatile market? This article will attempt to teach you the basics in three simple sections:
1. What Is Spot Infinity Grid?
2. How to Create an Spot Infinity Grid Order?
3. Spot Infinity Grid FAQs
1. What Is Spot Infinity Grid?
The Spot Infinity Grid bot is an upgraded version of the Spot Grid, also known as the "Never-Exit-Trades-Early Grid".
If the general rule of thumb for making profits is to buy low and sell high, then the inability to make profitable trades or even losses generally arise from the following situations:
1. Being influenced by market trends and constantly chasing the rise and fall.
2. Being unable to check the market 24 hours a day and missing key trading opportunities.
3. The price goes up and down only to return to its original point offering no opportunity to capitalize on any price differences.
Grid trading precisely solves the above issues:
1. It can automatically buy low and sell high 24/7.
2. It enables intelligent planning and places orders to avoid interference from the market sentiment.
3. As long as the market fluctuates up or down, there will be profits.
Are there any downsides to grid trading? Of course.
Take Spot Grid trading as an example: When creating a strategy, upper and lower limits need to be set. When the price exceeds the upper limit, it often leads to missed opportunities for the user.
Spot Infinity Grid is able to circumvent the above issue:
It does not require an upper limit to be set, which allows you to hold onto your digital assets in a rising market. Take BTC/USDT as an example:
If you create an Spot Infinity Grid strategy when the BTC is 20,000 USDT, and the profit per grid is set to 1%. When the price rises to the first grid, the BTC held will be worth 20,200 USDT. At this time, 200 USDT worth of BTC will be sold, and the amount of BTC held will be reduced, but the total value of USDT will have stayed at 20, 000 USDT even as the price continues to trend up. Similarly, BTC would be purchased if it were to fall in price, while the total value of BTC held would be maintained at 20,000 USDT.
2. How to Create an Spot Infinity Grid Order?
1. Enter the Spot Infinity Grid page:
APP: Homepage -> "Grid Trading" -> "Spot Infinity Grid" (App version 3.15.0 or above)
2. Create an Spot Infinity Grid strategy in 3 steps:
Step 1: Select a desired trading pair
Step 2: Set up grid parameters: lower price limit & profit per grid
Choose "Auto" to use the recommended parameters or "Manual" to customize your settings.
Step 3: Confirm your investment amount and start your strategy
3. Spot Grid FAQs
1. What is Spot Infinity Grid? What trading pairs does it support?
The Spot Infinity Grid is an upgraded version of the Spot Grid, also known as the "Never-Exit-Trades-Early Grid". Currently, the majority of BingX spot trading pairs are already supported on the Spot Infinity Grid.
2. What are the differences between the Spot Infinity Grid and Spot Grid?
Unlike Spot Grid, the Spot Infinity Grid does not require you to set an upper price limit. This helps avoid a common issue in Spot Grid when the price exceeds the upper limit resulting in missed opportunities for the user. Spot Infinity Grid, on the other hand, allows users to hold onto their digital assets in a rising market.
3. Does it support Copy Trading?
Spot Infinity Grid doesn't support Copy Trading yet.
4. Where do the recommended parameters for the Spot Infinity Grid come from?
The recommended parameters are back-tested based on historical data and are for reference use only.
5. What is the profit per grid?
The estimated profit of a single grid after selling, minus fees.
6. Is the Infinity Grid an arithmetic grid or a geometric grid?
Arithmetic grid.
7. What is the total profit?
Total profit = Cumulative Arbitrage profit + Unrealized PnL
8. What is arbitrage profit? What is unrealized PnL?
Arbitrage Profit: The difference between one sell order and one buy order.
Unrealized PnL: The profit or loss generated in pending orders and open positions. The formula is calculated by: (last price - filled price) * quantity held
9. What happens when a position is still held when closing the grid?
Users can choose to either let the system close the position or close it themselves.
10. Does Spot Grid charge a trading fee?
Spot Grid places orders in the spot market and follows the same fee structure as Spot Trading.
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Risk Disclaimer
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BingX is not responsible for any losses you may incur.
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