Wide Price Range
Last updated
Last updated
In grid trading, the risk involves the potential decrease in the total value of the investment due to price drops in the purchased token, rather than direct loss of the principal.
With a wide fixed price range, using fewer grid lines can lead to higher returns if the market shows significant price fluctuations, as each grid handles a larger price change, increasing profit per transaction.
However, in markets with minor price fluctuations, having more grid lines could be beneficial by increasing transaction frequency and capitalizing on small price movements to accumulate profits.
Investors should adjust the number of grid lines based on expected market volatility to maximize returns and minimize risks.
Wide Price Range
Capital Invested
Price Fluctuation Magnitude
Number of Grid Lines
Relative Return Level
Same
Same
Large
Few
High
Many
Low
Small
Many
High
Few
Low