How does Grid Trading work?

submitted 2 months ago by Elsamarie to cryptocurrency

Grid trading works by placing multiple buy and sell orders at predetermined price intervals, forming a "grid." As prices fluctuate, the strategy buys when the price drops to a certain level and sells when it rises, capturing profit from each movement. The grid trading bot development process automates this strategy, ensuring trades are executed quickly and efficiently without manual input. It's ideal for volatile markets, enabling traders to profit from both upward and downward price swings within a defined range.

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