Grid trading places a series of buy and sell orders at planned price levels to seek gains from repeated movements between them. A bot often automates the order replacement, but the grid is a trading method rather than a prediction that prices will remain inside a range.
How a completed cycle works
In a simple spot grid, a filled buy can lead to a sell order at a higher neighboring level. If that sell fills, the bot can place another buy below it. A hypothetical purchase of one unit at 98 USDT followed by a sale at 100 USDT produces 2 USDT of gross trading profit before fees.
A touched price does not guarantee a fill, and partial orders can change the actual quantities. Order spacing, allocation and transaction costs determine whether completed cycles produce useful net proceeds.
Count the assets still held
A grid may accumulate an asset while its price falls or sell much of its inventory during a sustained rise. Positive completed-cycle profit can coexist with a loss on the remaining holdings and a negative total result.
Outside a fixed range, new grid activity may pause while existing exposure remains. Some implementations move the range under additional rules. Spot and futures grids also carry different collateral and liquidation risks, so range boundaries should not be confused with guaranteed loss limits.