With grid trading, a trader is placing orders both below and above a certain price. The user is effectively building a “grid” of buy and sell orders around a fixed price on the exchange. The idea is that the trader will be able to profit from the normal amount of volatility that will be seen with any asset in a particular period of time. Buy orders will be executed when the price falls and sell orders will be initiated once the price has recovered.
In this way, the trader is able to earn a profit while the price moves within a particular expected range.
The main advantage of spot grid trading is that it does not require much input from the trader. A trader does not necessarily need to predict whether the price of the asset in question will tend up or down, and no input is needed once a bot has been launched, outside of monitoring results.
