Grid trading has become a trading strategy that is increasingly used in the futures market. It automatically earns profits for traders with minimal time and effort. In this article, we will take a closer look at the Futures Grid trading bot and a step-by-step guide to getting started with it. It is tailor-made for you, so ensure you take advantage of it. Let's get started!
Grid trading is the process of placing buy and sell orders at regular intervals, like in a game where you can determine how high or low your price will go. Unlike traditional strategies that have set rules for when to buy an asset (such as stocks), grid traders can make money by keeping their eyes on changing markets - figuring out when there's peak demand, so they know which side has an advantage over others who want it most.
The KuCoin Futures Grid trading bot works similarly to the Spot Grid Bot. They are both means to earn passively by capital appreciation, but they are differentiated by two unique features unique to the futures Grid Bot.
The first advantage of the Futures bot is that you can take advantage of the market irrespective of the direction it moves. This means you can either long or short a token on KuCoin Futures. If you think a token's price will go down, the KuCoin Futures bot will help you maximize your returns from the given opportunity.
KuCoin Bots Comparision
The other advantage of the Futures Grid bot is the presence of leverage. On our bot, we currently support up to 10 times leverage. This means your return can be amplified by a multiple of 10. While this is an amazing way to increase your capital, you should remember that higher returns equate to higher risks.
So how do you know which one to choose between the Futures Grid and Spot grid? To be honest, you will be better off with the spot grid if you do not want leverage and believe the market has bullish sentiments. If you want to run on the futures market, prefer having leverage, or maybe are unsure of the current market cycle, we advise you to use the Futures Grid bot.
Try to be careful in times of increased volatility to avoid the risk of being liquidated.