What is a Leveraged Grid?
A Leveraged Grid is an advanced trading strategy that amplifies invested capital through leverage to magnify returns, building on the foundation of a standard grid.
If you are bullish on ETH and plan to invest 100 USDT in a Leveraged Grid with 3x leverage, this effectively means you are deploying 300 USDT to run the grid bot (with 200 USDT borrowed from Pionex). Your actual investment is only 100 USDT, but grid profits are generated from the full 300 USDT, achieving 3x returns.
If you are bearish on ETH and currently hold 1 ETH, you can use a Leveraged Grid to go short and amplify profits. By selecting 3x leverage and investing 1 ETH into the grid, Pionex will lend you 2 ETH, resulting in a total investment of 3 ETH. Profits are generated from these 3 ETH, thus achieving 3x returns.
Leveraged Grids limit leverage to within 5x, reducing liquidation risk. However, please note the estimated liquidation price and try to set parameters so it falls outside the grid range.
How to use a Leveraged Grid?
1.Open the Pionex App, click Create Bot- Leveraged Grid, select the direction (long/short), and set the grid parameters.
2.Currently, Leveraged Grids support leverage multiples of 1x, 2x, 3x, 4x, and 5x. Choose leverage based on your risk tolerance. After setting all parameters, you’ll see the estimated liquidation price before placing an order. If the coin price hits this level, your grid orders will auto-close and liquidate your collateral—please stay alert.
3.Key Notes
1)Creating a Leveraged Grid requires paying interest, calculated based on the current daily interest rate (floating, determined by lender/borrower supply/demand and long/short direction, updated every 8 hours).
2)Monitor the liquidation price: when the coin price hits it, the robot auto-liquidates. Grid profits generated during operation will auto-top up your margin to prevent liquidation due to insufficient funds. You can also manually add margin to lower the liquidation price. Hitting the liquidation price means losing both principal and margin.
FAQ
Q: Can I modify order parameters after starting the Leveraged Grid bot?
A: No. Once created, parameters like price range and leverage cannot be changed. However, you can set take-profit/stop-loss, adjust margin, or withdraw grid profits.
Q: Will interest paid by the Leveraged Grid be auto-deducted from total profits?
A: Yes. Interest is auto-deducted from Unrealized Profit. Total profit = Unrealized Profit + Grid profits, so interest costs are reflected in total profit. View interest details under Unrealized Profit -Loan Interest Expense Records.
