Guide to LBank Grid Trading - web

What is Grid Trading?

Grid trading utilizes market fluctuations to buy low and sell high within a predefined price range to earn profits. This strategy works well in the highly volatile crypto markets.

Grid trading means placing buy orders below the set price, and sell orders above the set price, incrementally creating a price grid. For example, a trader can place a BTC buy order at every $5,000 below the market price, and sell orders at every $5,000 above, profiting from the range-bound movements.

Key Benefits of Grid Trading:

• Completely logic-based, no panic trading.
• Automated order placement, no need to monitor markets.
• 24/7 trading, never miss opportunities.
• No need to predict market direction, lower investment barrier.

How to conduct Grid Trading on LBank？

1. Log into your LBank account, tap "Trade" on the top navigation bar and select "Grid Trading". Ensure that you have funds or an available balance in your account before trading.

2. Choose the trading pair on the right side of the page or search for it (e.g. BTC/USDT).

3. On the grid trading page, you can manually configure your grid strategy parameters, or directly use our recommended AI smart strategy.  

Manual Grid Configuration

1. Enter the "Lower Price" and "Upper Price" in the price range section.

Notes：

• Upper Price: This is the upper limit for placing orders. If the market price exceeds this level, the system will not place any new buy or sell orders outside of this price range. The highest price must be set higher than the lower price.

• Lower Price: This is the lower limit for placing orders. If the market price falls below this level, the system will not place any new buy or sell orders outside of this price range. The lower price must be set lower than the higher price.

2. Set the "Number of Open Orders'' to determine buy/sell grid levels. It refers to the number of price levels created by dividing the range between the upper price and lower price into equal sections. When the market price reaches one of these price levels, the system will place a buy or sell order.

3. After selecting either “Arithmetic” or “Geometric”, the system will automatically calculate and display "Grid Spacing" and "Profit/grid". If the displayed single grid return is negative, you may need to adjust your upper/lower price range or the order quantity until it shows a positive return per level.

Notes：

• Arithmetic Grid: When creating the grid strategy using this option, the price difference between each grid level is equal.
• Geometric Grid: With this option, the percentage change between each grid level's price is equal instead of the absolute dollar difference. 
• Grid Spacing: The dollar or percentage difference between each grid level's price.
• Profit/grid: The approximate profit you could make per grid level if the price bounces between the levels as expected.

4. Enter the order quantity of single grid buying and selling and your total investment. You can set "Termination Conditions"  and "Settlement Options"  in the "Advanced Settings"  section, to automatically stop the grid when reaching profit/loss levels. You can also choose "Return current token" , "Market price to BTC"  or "Market price to USDT" as settlement options. Click on “Run Manual Grid” to continue.

5. Review the information and click "Confirm"  to place the order. After confirmation, you can view order details on the "Grid Trading"  section.

Using LBank AI Smart Grid

1. For the selected trading pair, the recommended "AI Smart Grid" strategy will auto-optimize parameters. 

2. You can set "Termination Conditions"  and "Settlement Options"  in the "Advanced Settings"  section, to automatically stop the grid when reaching profit/loss levels. You can also choose "Return current token" , "Market price to BTC"  or "Market price to USDT" as settlement options. Click on “Run AI Grid” to continue.

3. Review the information and click "Confirm"  to place the order. After confirmation, you can view order details on the "Grid Trading"  section.