What is Binance Grid Transaction? Binance grid spot and contract trading practical teaching-web3.0-php.cn

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What is Binance Grid Transaction?

Binance grid trading principle
What is the difference between spot grid and contract grid?

Binance grid transaction fee

Fund rate
Binance grid transaction risk analysis

Binance grid transaction advantages

Binance spot grid teaching
Step 1: Enter the robot trading page

Step 2: Reference AI parameters

Step 4: Turn off Binance Grid Robot
Binance Contract Grid Teaching
Step 1: Enter the robot trading page
Step 2: Reference AI parameters

Step 3: Customize Binance Contract Grid Parameters

FAQs on Binance Grid Transactions
Is there a minimum amount limit for Binance Grid Transactions?
What is the difference between an arithmetic grid and an arithmetic grid?
Can Binance grid transactions be used to short?

Is Binance grid trading strategy suitable for long-term holding?

This article introduces the principles of Binance Grid, as well as the differences between spot grids and contract grids. It includes practical teaching, covering the complete steps from parameter setting to ending the robot, and is suitable for investors who are interested in Binance Grid trading to get started quickly.

Grid trading is an automated trading strategy that divides funds into multiple parts within a certain price range, and continuously carries out low buying and high selling. In addition to the "ups and downs" of trading coin prices, this strategy also uses the "volatility" of the coin prices to make profits, which is suitable for use in fluctuating markets.

Use Binance grid robot to achieve automatic "buy low and sell high" 24 hours a year-round. Currently, Binance Grid supports spot grids and contract grids at the same time.

Binance grid trading principle

Taking BTC as an example, suppose we open a long grid when the BTC coin price is $1,000 and set the range between $600 and $1,500. The robot will first buy some spot when opening an order, and hang a piece of sell orders above and a piece of buy orders below. Binance grid transactions will adjust the order based on the subsequent rise and fall of the currency price.

When the currency price rises to $1,100: a portion of the spot will be sold and a purchase order will be placed at $1,000 again.

When the currency price falls to $900: a part of the spot will be bought and a sell order will be placed at $1,000 again.

After setting the price range, as long as the price of the currency floats within the range, the robot will continue to adjust the orders to help us buy low and sell high, and make profits from the fluctuating market trend.

But in fact, the network may break, that is, the situation where the currency price rises and falls below the price range, which will cause transaction interruption:

可能情况	币安网格交易机器人运行状况
币价上涨超出价格上限	机器人将暂停交易，布局的BTC 都会被卖掉，全部转为已实现获利（USDT），并可能错过币价后续涨幅。直到币价跌回价格区间内，机器人才会重新开始买卖。
币价下滑跌破价格下限	机器人将暂停交易，投入的资金将全数买入BTC，并完全承受BTC 下跌的浮动亏损。直到币价重回区间内才会继续买卖。

In short, grid trading is suitable for fluctuating markets, and the currency price needs to be within the range before arbitrage will be carried out. When the target currency falls, it may still cause grid transactions to lose money (unless shorted with the contract grid).

What is the difference between spot grid and contract grid?

Binance grid robots are divided into spot grids and contract grids according to the transaction target. The difference between spot grid and contract grid is the subject matter of buying and selling. The main differences are as follows:

	合约网格	现货网格
资金费率	有	无
爆仓风险	有	无
资金效率	较高	较低
交易手续费	较低	较高
适合趋势	适合所有震荡行情，价格下行也能获利（做空网格）	仅适合震荡向上行情

Comparison of the difference between contract grid and spot grid

Binance spot grid transaction target is spot, so it can only go long; while Binance contract grid main transaction target is contract, because it has a leverage effect, and has higher capital efficiency and can do long and short two-way, and compared with spot grid transactions, additional payment/collected capital fees will be required.

Binance grid handling fee

Binance grid handling fee mainly comes from transaction handling fee. If you are using a contract grid, you will get an additional capital rate.

Transaction fee

Spot grid and contract grid transaction subjects are different, and the applicable fees are also different:

Binance spot grid handling fee applies to spot transaction fees; Binance contract grid handling fee applies to contract transaction fees. The following is the transaction fee for Binance Grid:

网格交易类型	币安网格交易手续费
网格交易类型	开仓／平仓	运行中
现货网格	0.10%	0.10%
合约网格	0.05%	0.02%

When opening and closing the grid, you need to buy and sell positions at the market price, so it is applicable to Taker rates. The spot grid handling rate is 0.1%, and the contract grid handling rate is 0.05%.
Grid running: the pending order method is used during operation, so it is applicable to Maker rates. The handling fee rate of spot grid is 0.1%, and the handling fee rate of contract grid is 0.02%.

Fund rate

Because the contract grid is essentially traded by contract, it will be the same as that of general contract transactions, and the fund rate needs to be paid/collected regularly. This is a feature that spot grid does not have. Please pay special attention.

But the capital rate is good and bad, the details are as follows:

When the capital rate is negative: long parties can charge the tariff, short parties need to pay the tariff
Extended reading: What is Binance's capital rate arbitrage robot? Parameter setting teaching, advantages and risks

Binance grid trading risk analysis

Advantages of Binance grid trading

24-hour fully automatic trading

Binance grid trading robot issuing orders, and 24-hour fully automatic trading, without having to watch the market at any time, you can feel at ease regardless of the rise and fall.

Overcome human weaknesses, buy low and sell high

Chasing at the high point and selling in Adui Valley is human nature. However, before opening an order, a trading plan must be formulated, and the robot will automatically execute the transaction to overcome the current emotional impact of investors' buying and selling.

Provide AI parameters. You can also use zero experience to use

Binance will back-test the currency price trends over the past period of time for each currency, and propose AI parameters that can be directly applied so that you can copy them when you are not experienced enough. After you are familiar with it, adjust the parameters yourself.

Low exposure risk and good resistance to decline

Compared to holding spot or contracts in full, due to the mechanism of grid transactions being divided into multiple orders, the exposure risk for this currency is lower, and it is more resistant to decline when the currency price falls.

Disadvantages of Binance Grid Trading

Current price exceeds the price range

After the currency price rises, all spots will be sold out, and investors may miss the profits of subsequent upward trends; after the currency price falls below the lower limit, funds will buy spot/contracts, and investors will bear the floating losses of the currency decline.

And, as long as the price range is exceeded, the Binance Grid Trading Robot will suspend operation and stop arbitrage.

Compared to investing in spot or contracts, the mechanism of grid transactions being divided into multiple orders is equivalent to spending the same amount of money but buying less spot/contracts.

Only suitable for volatile markets

Because Binance grid transactions need to fluctuate up and down through the price of currency, arbitrage between grids. If a unilateral straight rise/decline occurs, it may reduce the number of triggered arbitrage and reduce the profits of grid transactions.

Trading cost erosion and profitability

Frequent buying and selling will incur a lot of transaction fees. If the grid interval setting is too narrow, it will squeeze the single arbitrage space. Although the number of arbitrage increases, the handling fee will increase accordingly, which will further erode profits.

Binance Spot Grid Teaching

Since the spot grid transactions of Binance Grid are mainly based on buying and selling spot, they are suitable for fluctuating and rising markets.

Step 1: Enter the robot trading page

After clicking [Trading Robot] under the [Trading] page, click [Spot Grid]

Step 2: Refer to AI parameters

First, select the review period first. AI will review the historical prices of the past period, give the grid upper and lower limits and grid count suggestions, and choose [Dissatisfied? Customize] You can customize the parameters again.

Step 3: Customize Binance Spot Grid Parameters

In the page of spot grid transactions, there are the following parameters for setting:

Step 4: Close Binance Grid Robot

Binance Grid Robot Under the [All Entrustment] page, select the robot to be turned off and click [End].

价格范围	价格的上下限，预设带入是AI 回顾过去期间的判断，建议依照个人预期进行调整。
网格数	网格数越多，触发套利次数越多，但每次套利的利润率也会越低。笔者个人推荐设定网格每格利润在0.3% ~ 0.5% 之间。
等差／等比网格	每一格网格之间的差距是采等差或等比级距。两者并没有特别的优劣，不过一般来说，等差间隔适合在小价格区间使用，等比网格适合在大价格区间使用。
投资额	投入的金额，至少要比最低投入额高。

Binance Contract Grid Teaching

The contract grid of Binance Grid is divided into three types: neutral, long and short according to the expected direction.

Step 1: Enter the robot trading page

After clicking [Trading Robot] under the [Trading] page, click [Contract Grid]

Step 2: Refer to AI parameters

Step 3: Customized Binance Contract Grid Parameters

In the page of Binance Contract Grid trading, the following parameters are available for setting compared to the spot grid:

Grid type: Neutral/Long/Short

Leverage multiple: Set the contract leverage for operation. The higher the leverage, the lower the initial capital demand for investment will be, but it is generally recommended not to set it too high to avoid overturning positions.

The following are advanced settings (selected):

After setting is completed, press [Create] to start running.

Step 4: Close Binance Grid Robot

Binance Grid Robot On the [All Delegates] page, select the robot you want to close, and click [End].

Frequently Asked Questions about Binance Grid Transactions

Is there a minimum amount limit for Binance Grid Transactions?

There are different minimum amount limits depending on different parameters, but for spot grid transactions of BTC/USD, the minimum investment amount is about $300U.

What is the difference between an arithmetic grid and an arithmetic grid?

Equi-scale grid

The spacing between each grid is doubled in equal proportion, and the profit margin of each grid arbitrage is fixed, such as: 10>12>14.4.

Due to the increasing characteristics of equal ratio grids, it is usually suitable for use in larger coin price ranges.

Arithmetic grid

The spacing between each grid remains unchanged, and the profit number of each grid arbitrage is fixed. For example: 10>12>14.

Because the arithmetic grid spacing is the same, if the coin price range is matched too large, it may cause some grid profits to be less than the grid transaction costs, so it is usually more suitable for use in smaller coin price ranges.

In practice, the difference in the effectiveness of arbitrage between averaging grids and arbitrage grids will not be too much, and investors can choose according to their personal habits.

Can Binance grid transactions be used to short?

Binance spot grid can only go long; Binance contract grid can be used for both long and short parties. It is recommended to use contract grid to short.

Is Binance grid trading strategy suitable for long-term holding?

Binance grid trading is usually suitable for short-term and medium-term trading (1 week ~ several months), but if the market is in a box-shaped consolidation state, it can also be held for a long time.

However, appropriate parameters need to be adjusted regularly to prevent the currency price from exceeding the price range.

Will grid trading lose money?

Whether it is a spot grid or a contract grid transaction, it will lose money, but the risk of losing money in the spot grid is lower than holding a complete spot.

When the target currency falls, it may still cause grid transactions to lose money (unless shorted with the contract grid).

The above is the detailed content of What is Binance Grid Transaction? Binance grid spot and contract trading practical teaching. For more information, please follow other related articles on the PHP Chinese website!