When creating a Futures Grid strategy, the following parameters directly affect how the strategy operates and its potential returns and risk level.
1. Price Range
When creating a Futures Grid strategy, you must set an upper price limit and a lower price limit to define the operating range of the grid. If the market price moves outside the selected range (above the upper limit or below the lower limit), the grid strategy will stop opening new positions. This mechanism helps prevent the strategy from continuing to execute trades under unexpected market conditions, thereby supporting risk control.
Example:
Assume you have selected a Long Grid strategy. The current BTCUSDT perpetual price is 48,000 USDT.
If you expect the price to decline after exceeding 49,000 USDT, you may set the upper limit at 49,000 USDT.
When BTC rises to this upper limit:
- The strategy will stop opening new positions
- Existing orders within the defined range may still execute
- No additional buy orders will be placed above the defined range
This helps reduce the risk of chasing prices higher.
2. Number of Grids
Grid quantity range:
Important: The price difference between grids must be at least the minimum price increment (tick size). The tick size varies by trading pair.
If you see a “grid interval too small” message, you may try the following adjustments:
- Reduce the number of grids
- Expand the price range (raise the upper limit, lower the lower limit, or adjust both)
- Increase the investment amount per order
3. Arithmetic vs. Geometric Mode
Arithmetic Grid
Each grid has an equal price difference.
Formula: Grid interval = (Upper price − Lower price) ÷ Number of grids
Example:
Upper price = 30,000
Lower price = 20,000
Number of grids = 5
Grid interval = (30,000 − 20,000) ÷ 5 = 2,000
Grid price levels: 20,000 → 22,000 → 24,000 → 26,000 → 28,000 → 30,000
Geometric Grid
Each grid maintains an equal price ratio.
Formula: Grid ratio = (Upper price ÷ Lower price)^(1 ÷ Number of grids)
Example:
Upper price = 30,000
Lower price = 20,000
Number of grids = 5
Grid ratio = (30,000 ÷ 20,000)^(1/5) ≈ 1.08447 (Approximately 8.45% per grid)
Grid price levels (Actual values may be rounded based on the trading pair’s tick size):
20,000 → 21,690 → 23,520 → 25,500 → 27,645 → 30,000
Note: The distribution mode cannot be modified after the grid is created.
4. Estimated Profit per Grid (After Fees)
The system calculates the estimated profit rate per grid based on your selected parameters and the applicable trading fee rate. If the estimated grid profit rate is less than or equal to zero, the grid strategy cannot be created. In this case, you may optimize the parameters by adjusting the price range or the number of grids.
5. Order Size per Grid
The calculation method is as follows:
Total coin amount = (Initial margin × 0.8) ÷ Average entry price ÷ (1 ÷ Leverage + Taker fee rate)
Coin amount per grid = Total coin amount ÷ Number of grids
Where:
- 0.8 represents the margin allocation coefficient used for order placement
- Only 80% of the initial margin is used to calculate the maximum order size
6. Effective Investment After Leverage
Effective investment = Margin × Leverage
Leverage increases the position size, but it also amplifies potential risk.
7. Minimum Required Margin
The minimum required margin is calculated as follows:
Minimum margin =
[Minimum order quantity (1 contract) × Contract face value × Average entry price × Number of grids × (1 ÷ Leverage + Taker fee rate × 2)] ÷ 0.8
8. Estimated Liquidation Price
When all buy orders or all sell orders within the grid are fully executed, the system will display an estimated liquidation price to help assess risk exposure.
9. Take-Profit and Stop-Loss
If take-profit or stop-loss is configured, once the latest market price reaches the trigger level:
- The grid strategy will stop running
- The system will close positions at the market price
- Remaining assets will be returned to the futures account
10. Trigger Price
If a trigger price is set, the grid strategy will start running only when the latest market price reaches the specified trigger level.
