A futures grid automates orders at successive price levels using derivatives positions supported by margin. It seeks to complete repeated trading cycles as prices move through a range, while the contracts can create exposure larger than the capital committed.
Direction and order behavior
Implementations may offer long, short or neutral configurations. These labels describe how orders build and reduce positions; a neutral setting does not guarantee zero directional exposure at every moment. Contract choice, grid spacing, position size and leverage together shape the strategy.
A price reaching a level does not ensure execution. Available margin, order restrictions, liquidity and partial fills can affect the intended sequence. Margin allocation between bots and other positions depends on the platform's account design.
Evaluate the whole position
Completed grid trades can show positive profit while losses on open positions make the overall result negative. Trading fees and, for applicable perpetual contracts, funding payments also affect returns. A displayed grid-profit figure therefore needs its precise calculation explained.
If price leaves a fixed trading range, new grid orders may pause while existing positions remain exposed. An adverse trend can still cause liquidation. Adding collateral may improve the margin buffer but does not reverse losses or reduce an unchanged position. Stop conditions and bot termination also need checking: closing positions requires execution at available prices.