What is the Margin Grid?
The Margin Grid allows you to collateralize your coins to borrow the other coin in the trading pair and run a grid strategy. It is suitable for both volatile markets and one-sided markets.
For example, if you are bullish on ETH, when the coin price rises, you can use a Margin Grid to collateralize ETH to borrow USDT and buy ETH. The borrowed USDT can earn profits due to the rise in ETH, while the collateralized ETH will not be sold prematurely at a lower price due to the price increase—killing two birds with one stone.
If the market is bearish and prices keep falling, you can use a Margin Grid to collateralize USDT to borrow ETH (equivalent to going short on ETH). The grid will first sell ETH at a high price and then buy back at a low price, helping you earn more profits.
Margin 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 the Margin Grid?
1.Open the Pionex App, click Create Bot-Margin Grid, select the direction (long/short), and set the grid price range, number of grids, collateral amount, etc.
2.Currently, Margin 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 Margin 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 Margin 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 Margin Grid be auto-deducted from total profits?
A: Yes. Interest is auto-deducted from floating profit/loss. Total profit = Unrealized profit+ Grid profit, so interest costs are reflected in total profit. View interest details under Unrealized profit-Loan Interest Expense Records.
Q: I don’t have token spot but want to go long by investing USDT. How?
A: Margin Grids require collateralizing your coins to borrow the other trading pair coin. To go long, you need to invest coins; to go short, invest USDT. For USDT-based long or coin-based short, use a Leveraged Grid instead.
