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Next: see where a leveraged grid is closed
The futures grid liquidation page works through a grid with leverage and shows where the forced close comes.
What is included
- What it is, in plain words
- The formula or mechanism, with exact arithmetic
- How it hits grid, martingale and DCA bots
- A check you can run before you switch a bot on
Who it is for
- People who run or plan to run a trading bot
- Anyone reading a backtest or a bot sales page
- Readers who want the numbers, not the pitch
- Not advice, and not a signal service
Key facts
- A grid bot needs a price range, a number of grids and an amount of money. A futures form adds leverage and often a direction, and leverage changes what the range means.
- With leverage, a long position can be force closed after a fall of about 100 divided by the leverage percent, before fees and maintenance margin. In a made-up case that is 33.3 percent at 3x and 10.0 percent at 10x (calculated by us on 31 Oct 2026, approximation).
- If that fall is smaller than the fall to the bottom of the range, the position is closed inside the range. A made-up range of 80 to 120 from an entry of 100 reaches 20.0 percent below entry.
- More grids in the same range make each step smaller: in the made-up range 10 geometric grids give 4.14 percent a step and 80 give 0.51, close to the fee.
- This page explains how something works and does not recommend it. We have not tested it for this page. Check the current terms.
The settings, in general terms
A grid bot places buys below the price and sells above it at fixed steps and earns the gap each time a pair completes. The big exchange named here offers grid bots, and we did not read its current screens or help pages for this page. We therefore do not state its defaults, limits, the names of its options, its fees or which markets it covers. Check all of that on the venue. What follows is the common core of any grid bot, with the arithmetic done so you can check any venue yourself.
- Price range. Lower and upper price. Outside it the grid does nothing.
- Number of grids. The count of steps. More grids, smaller steps.
- Spacing type. Arithmetic steps are equal in price, geometric steps are equal in percent. Check which your venue offers.
- Investment. The money used, shared among grids.
- Leverage and direction (futures form). Leverage multiplies exposure and brings a liquidation price. Direction, where offered, says whether the grid leans long, short or neutral. Check the venue.
- Stop or trigger prices. Optional prices to start or end the bot.
Two formulas to keep
The second formula is a rough guide: it ignores maintenance margin, fees and funding, and the way a venue calculates liquidation for a position built up in several fills. The real liquidation price is shown by the venue, and the liquidation price calculator explains it further. Use the formula to see the shape of the risk, and read the venue's number before you trade.
Worked example: leverage against the range
Made-up numbers: a long grid with range 80 to 120 that is entered at 100. The bottom of the range is 20.0 percent below the entry. The table shows where a long would be force closed at each leverage, using the rough formula.
| Leverage | Rough liquidation price | Fall from entry to liquidation | Fall from entry to range bottom | Liquidation is |
|---|---|---|---|---|
| 2x | 50.00 | 50.0% | 20.0% | below the range |
| 3x | 66.67 | 33.3% | 20.0% | below the range |
| 5x | 80.00 | 20.0% | 20.0% | at the range bottom |
| 10x | 90.00 | 10.0% | 20.0% | inside the range |
| 20x | 95.00 | 5.0% | 20.0% | inside the range |
Calculated by us on 31 Oct 2026, an approximation for one entry at 100. At 2x the position survives past the bottom of the range, at 5x it is force closed exactly at the bottom, and at 10x and 20x it is closed far inside the range, so the grid never gets to use most of the lines below. The range then promises cover it cannot deliver. Real positions are built in steps as the price falls, so the average entry is lower than 100 and the real liquidation price differs from this rough number.
Worked example: number of grids against fees
Keep the range 80 to 120 and use geometric spacing, where each step is the same percent. The table gives the step for four counts and takes off a made-up fee of 0.1 percent each side, so 0.2 percent a round trip. The fee is invented and real fees differ.
| Number of grids | Geometric step | Average price step | Net per grid after 0.2% fees |
|---|---|---|---|
| 10 | 4.138% | 4.00 | 3.938% |
| 20 | 2.048% | 2.00 | 1.848% |
| 40 | 1.019% | 1.00 | 0.819% |
| 80 | 0.508% | 0.50 | 0.308% |
Calculated by us on 31 Oct 2026, exact for these inputs. At 80 grids the net is only 0.308 percent, so a small rise in fees or spread removes it. Where leverage is used, the net per grid is multiplied on the margin but so is the loss, and funding or borrowing costs, where a venue charges them, come off as well.
How the settings interact
- Leverage sets how far price can fall before the position is closed, and the range is only useful down to that point.
- More grids and more leverage together mean many small gains on a position that a modest fall can remove.
- A wide range with high leverage is inconsistent: the lower lines can never be reached.
- A direction setting, where offered, changes which side holds the position at the start. Check the venue for what it does.
How to check your own settings
- Take the venue's own liquidation price for the leverage you chose and compare it with the lower line of the range.
- Work out the step in percent and take off twice the fee, then allow for spread.
- Work out the loss on everything bought if price reaches the lower line or the stop.
- Start with the spot form or a very small size, and watch the first fills against these numbers.
What this page does not tell you
It does not give any default, limit, fee, funding rule or liquidation method of the venue, and the venue's own number always wins over our rough formula. All prices and fees are made up. For more see futures grid liquidation, crypto liquidation and grid trading bot.
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FAQ
Frequently Asked Questions
What settings does a grid bot on an exchange have?
A price range, a number of grids and an investment, plus on the futures form leverage and sometimes a direction. Check which options the venue shows.
How do I work out the profit per grid?
Compute the step in percent from the range and the count, then subtract the fee on both sides. Allow for spread as well. If the result is not above zero, each grid loses.
How does leverage change a grid bot?
It multiplies exposure and adds a liquidation price. If that price is inside the range, the position can be closed before the lower lines are used.
Is the liquidation formula on this page exact?
No. It is a rough guide that ignores maintenance margin, fees and funding. The venue shows its own liquidation price, and that is the one to use.
Does more grids mean more profit?
No. More grids make each step smaller, so each completed grid earns less and fees take a larger share.
Are the numbers on this page real?
Example numbers are made up to show how the maths works, and the page says so. A figure only counts as exact when the page says it was calculated on a stated date. Nothing you enter in a calculator leaves your browser.
Can I use this to decide whether to run a bot?
It can show whether a bot's numbers hold together and how much an account can lose. It cannot say what the market will do, and it is not advice. Use it to ask better questions, then read the terms of your own broker or exchange.
Is this financial advice?
No. It explains grid settings with made-up numbers and recommends nothing.
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