Grid trading is a rules-based strategy that places staggered buy and sell orders at predefined price intervals around a chosen mid-price.

Grid trading is a rules-based strategy that places staggered buy and sell orders at predefined price intervals around a chosen mid-price. By building a "grid" of orders, the method seeks to harvest small, repeated gains from market oscillations without trying to predict exact highs and lows. Traders use it for range-bound assets in crypto, forex, and equities, often with automated bots that execute 24/7. A solid grid plan defines the grid range, step size, order count, position sizing, take-profit and stop-loss rules, and risk controls. When price dips, lower buy orders fill; as it rebounds, corresponding sell orders close for profit, compounding through volatility. Key advantages include simplicity, automation, and clear rules; key risks include prolonged trends against the position, increased fees, slippage, and insufficient liquidity. Backtesting, realistic fee assumptions, and careful position limits are essential. With proper parameters and discipline, grid trading can turn sideways markets into a stream of incremental gains while keeping decisions systematic and emotion-light.

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