John_ Martin

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What is grid trading in forex?

Grid trading involves placing a series of buy and sell orders at predefined intervals above and below a set price, creating a “grid.” This captures profits from price oscillations regardless of direction. For example, a grid trader may set buy orders every 20 pips below and sell orders every 20 pips above the current price. While profitable in ranging markets, grid trading can suffer huge losses in strong trends without stops. Automation is often used to manage the system. Proper risk management, such as equity protection and diversification, is vital for survival.