3️⃣Derivatives Grid Trading FAQs
Q1: What are Derivative Grid Tradings?
A: Derivatives Grid Tradings are tools to automate your trading strategies. They're designed to place long and short positions at regular intervals within a predefined price range. Grid Tradings seek to capitalize on price fluctuations. They perform best in volatile markets.
Q2: What products support Grid Trading on Tapbit?
A: Grid Trading is currently supported on our USDT perpetual trading only..
Q3: What kind of market is suitable for Derivatives Grid Trading?
A: Derivatives Grid Trading strategies are suitable for volatile and sideways markets.
Q4: Which trading pairs are supported by Derivatives Grid Trading?
A: Currently, Derivatives Grid Trading supports USDT perpetual trading pairs.
Q5: What tokens does Tapbit support to create my Derivatives Grid Trading?
A: Currently, only USDT as margin currency is supported.
Q6: Are there any fees associated with Derivatives Grid Tradings?
A: The fee structure is the same as for rates incurred when you trade on Tapbit's Derivatives platform.
Please note that a funding fee will be incurred, which may be paid or received.
Q7: Which account do I use for Derivatives Grid Trading?
A: Derivatives Grid will be directly through your Tapbit Derivatives Account.
Q8: Are there any KYC requirements for Derivatives Grid Trading?
A: Currently, there are none. However, KYC is required if you intend to withdraw more than 2 BTC per day.
Q9: What strategy direction does Tapbit Derivatives Grid Trading offer?
A: Tapbit’s Derivatives Grid Trading offers two (2) ways — Long and Short — to place your orders.
Long mode is suitable for volatile market conditions where prices are rising.
Short mode is suitable for volatile market conditions where prices are falling.
Q10: How do I receive my Derivatives grid profits?
A: When your Derivatives Grid Trading is running, your grid profits will be auto credited to your Derivatives Account.
Q12: Is there a limit to the number of Derivatives grids?
A: Yes. Please refer to the following:
Minimum Number of Grids : 2
Maximum Number of Grids : 50
Please note that the system will adjust the limit of the maximum number of grids according to the price range you’ve set. In other words, if you set a narrower price range, the maximum number of grids will decrease accordingly to ensure that the Derivatives Grid Trading strategy records positive profits (i.e., grid profits are greater than trading fees) under normal market conditions.
The specific minimum/maximum number of grids will be displayed in the Grid Qty column according to your price range settings.
Q13: Are there limits on the amount of investment for Derivatives Grid Trading?
A: The investment amount limit can vary, depending on the upper price, lower price and the number of grids you’ve set. The specific minimum/maximum investment amounts will be displayed in the Investment column based on the parameters you set.
Q14: Can I adjust my Derivatives Grid Trading parameters?
A: Yes. You can modify two parameters of the running Derivatives Grid Trading, including the Stop Bottom Price Trigger and Stop Top Price Trigger.
Q15: How many Derivatives Grid Tradings can I run simultaneously?
A: Currently, you can have up to 10 Derivatives Grid Tradings running at the same time.
Q16: Why am I unable to successfully create a Derivatives Grid Trading?
A: If you fail to create a Derivatives Grid Trading, it may be due to the following reasons:
1. You do not have enough USDT assets in your Derivatives Account/Unified Margin Account to meet the minimum investment amount for your Derivatives Grid Trading strategy.
2. The parameters you’ve set are not within a specified range.
3. The selected trading pair is already executing grid trading.
4. The selected cryptocurrency has pending orders or open positions.
5. The selected trading pair has a bi-directional position or is opposite to the strategy direction.
6. Exceeded the maximum limit of strategy quantity. Only 10 strategies can be run at a time in this phase.
7. Strategy creation is not allowed in Copy Trade Mode. Both Traders and Followers.
If the Derivatives Grid Trading still fails, please reach out to Tapbit Customer Support by submitting a case here , and we will contact you as soon as possible.
Q17: Do I need to terminate my Derivatives Grid Trading if the market price falls outside of my predefined price range?
A: The Grid Trading will only operate within the upper and lower price bounds you've configured. If the market price falls outside this range, no new order will be placed by the Grid Trading until the price returns to the range.
Q18: How is my grid profit calculated if I manually close my Derivatives Grid Trading strategy?
A: All profits will be settled immediately at market price.
Q19: What’s the Total P&L, Grid Profits, Unrealized PNL and Realized PNL?
A:
Total PNL(USDT): Total PNL= Grid PNL + Unrealized PNL
Grid PNL(USDT): The realized profit of filled grid orders that are matched.
Unrealized PNL(USDT): The unrealized profit of open positions, calculated based on the difference between the last price and the entry price of positions.
Realized PNL(USDT) : Realized profit and loss since opening the position. Realized profit and loss = Fee + Funding rate + Profit and loss of closing the position.
Q20: Where can I view my order history?
A: Please head to History to view completed trades. Click on Details to view the details of our trade, including the profit(s), total APR and price range.
Q21: Will my profit from the Derivatives Grid Trading be insufficient to cover the funding fees?
A: If your profit cannot cover the funding fee, the Derivatives Grid Trading system will automatically terminate your bot to avoid bigger losses.
Q22: Under what circumstances will the Derivatives Grid Trading automatically close?
A: The Derivatives Grid Trading can automatically shut down for the following reasons:
Your position triggers the set stop bottom trigger price
Your position triggers the set stop top trigger price
Your position triggers a liquidation
Your position has been liquidated
The trading pair specified in your strategy has reached the stop trigger price.
Insufficient margin for your pending orders.
ADL (Auto-Deleveraging) event.
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