Gate.io Short Margin Grid

Principles of Short Margin Grid
The short margin grid is based on the short grid, which amplifies the amount invested to enlarge the grid income through leverage. Gate.io short margin grid provides 2x to 10x leverage on the basis of the short grid, so as to achieve a holding strategy that a higher return is gained during a downtrend market.
For example, if you have 3 BTC in your hand and you think that BTC is about to fall in price, then you can use the short margin grid of Gate.io to set 2 times of the leverage. If you invest 3 BTC, then Gate.io will automatically top in 3 BTC for you, so the total investment is 6 BTC. If the yield is 200%, your return without leverage is 6 BTC and 12 BTC with leverage in the case of investing in 3 BTC, so the actual yield is (12-3)/3 =300%.


Users who want to use leverage to amplify their gains on the basis of short grid trading can complete traditional leverage trading through margin grid trading with no need to keep an eye on the market. The system automatically helps users trade and arbitrage according to the parameters set by users to help them obtain stable returns in the oscillating market, thus solving the problem that users want to enlarge their own income multiple times on the basis of leverage trading.
3. Example
Suppose you hold 1000 BTC with the price range set at 5000-10000, the grid range at 1000 and the leverage set to 2x. Suppose that the price rises for every 1 range, 100 coins are sold, and the leverage setting will automatically sell 200 coins. When the price falls for every 1 range, 100 coins will be bought, and the leverage setting will automatically buy 200 coins.
Therefore, when the price rises to 9000, it sells 100 coins (leverage sells 200 coins); when the price further rises to 10000, it continues to sell 100 coins (leverage sells 200 coins).
After the price falls, coins are bought. If the price falls to 9000, it will buy 100 coins (leverages buy 200 coins); when it further falls to 8000, it will continue to buy 100 coins (leverage buys 200 coins).
Assuming trading is terminated at this point, the gain by only holding is 6.7%, and the gain by trading through a short margin grid is 23.5%.



Guidance Of How to open a position on Gate.io Short Margin Grid
Before starting short Margin grid trading, please open the leverage account first, please refer to the opening process:
How to Conduct Margin Trading on web (video)
How to Conduct Margin Trading (on APP)

Process of creating a margin grid: navigation bar - click "Copy Trading"- click "Create A New Strategy" - select "Strategies Templates" - "Margin Grid" -- select "Create Strategy" - "Configure Parameters" - Click "Create", as shown in the following figure:


De_script_ion of the parameter settings:

Choice of going long or short: you can choose according to your subjective prediction of the market. Choose to go long if you predict the price will rise, and choose to go short and vice versa.
Lower limit price:
If the market price is lower than the lowest buying price set, then no purchase orders will be placed. The lower limit price cannot be executed as the selling price in the strategy.
Upper limit price:
The highest selling price, which if the latest market price is higher than, no selling orders will be placed. The upper limit price cannot be executed as the purchase price in the strategy.
Number of grids: The number of executed grids, varying from 2 to 200.

Equal difference grid: each grid price is the same in spacing, which is calculated as (upper limit price – lower limit price) / (number of grids – 1)

Equal ratio grid: the price spacing of each grid is equally proportional and is calculated as follows


Base currency buy/sell qty per grid: the amount of the base currency in each grid.
Quantity increment:
"Quantity Increment" is disabled by default. After enabling it, you can choose to increase the buying/selling amount of each grid "Per Quantity" or "Pro Rata".

Example:
The basic size of a grid is 1 and the set quantity increment is 2. Then the first grid can buy/sell 1BTC, the second grid can buy/sell 1+2=3BTC, the third grid can buy/sell 1+2+2=5BTC...
Leverage: select a leverage multiple. Increasing the leverage multiple can reduce the minimum investment amount, with the risk and return coexisting.

Reference Daily Interest Rate: The reference daily interest rate for borrowed funds by margin grid.

Stop-loss price:
The stop loss is triggered when the latest market price is lower than or equal to this price, which must be less than the lower limit price. (Short) The stop loss is triggered when the latest market price is higher than or equal to this price, which must be higher than the upper limit price.
Take-profit price:
(long) take-profit will be triggered when the latest market price is higher than or equal to the price, which must be higher than the upper limit price. (short) The take-profit is triggered when the latest market price is less than or equal to the price, which must be less than the lower limit price.
Trigger price of the strategy:
(long) only when the market’s latest price is lower than or equal to the trigger price will the grid start to run; The trigger price configuration needs to be lower than the latest price and between the lowest price and the highest price in the grid range. (short) When the latest market price is higher than or equal to the trigger price, the grid will start to run; The trigger price configuration needs to be higher than the latest price, and between the lowest and highest prices in the grid range.
Settlement options (optional):
Sell (holding currency) when it terminates: When enabled, your holdings will be used to buy USDT at the market price when the strategy terminates.
You may be also interested in: