How to Do the Spot Trading?
A spot trade is a simple transaction between a buyer and a seller to trade at the current market rate, known as the spot price. The trade takes place immediately when the order is fulfilled.
Users can prepare spot trades in advance to trigger when a specific spot price is reached, known as a limit order. You can make spot trades on LYOTRADE through our trading page interface
1. Visit the LYOTRADE website and click [Login] at the top right corner.
2. Click on any cryptocurrency on the home page to go directly to the corresponding spot trading page. You can find a larger selection by clicking [View more markets] at the bottom of the list.
3. Let’s look at buying some LYO. At the top of the LYOTRADE home page, click on the [Trade] option and select [Classic] or [Advanced].
Go to the buying section to buy LYO and fill in the price and the amount for your order. Click on [Buy LYO] to complete the transaction.
The default order type is a limit order. If traders want to place an order as soon as possible, they may switch to [Market] Order. By choosing a market order, users can trade instantly at the current market price.
If the market price of LYO/USDT is at 0.002, but you want to buy at a specific price, for example, 0.001, you can place an [Limit] order. When the market price reaches your set price, your placed order will be executed.
The percentages shown below the LYO [Amount] field refer to the percentage amount of your held USDT you wish to trade for LYO. Pull the slider across to change the desired amount.
A stop-limit order is a market order that has both a stop price and a limit price. When the stop price is reached, it triggers the limit order. The limit price is the specific price of the limit order the stop price triggers.
Once your stop price has been reached, the limit order is immediately placed on the order book.
The stop and limit prices can be the same. However, it’s recommended for sell orders to set your stop price (trigger price) slightly higher than the limit price. The price difference allows for a safety gap in price between the time the order is triggered and when it is fulfilled.
For buy orders, set your stop price slightly lower than the limit price.
This will also reduce the risk of your order not being fulfilled.
Stop price: When the asset’s price reaches the given stop price, the stop-limit order is executed to buy or sell the asset at the given limit price or better.
Limit price: The selected (or potentially better) price that the stop-limit order is executed at.
Quantity: The number of assets to buy or sell in the stop-limit order.
The last traded price of LYO is 498 LYOCREDIT, and you feel that there is resistance around 500 LYOCREDIT.
If you think that the price will go higher after the price reaches the resistance level, you can put a Stop-Limit order to automatically buy more LYO at the price of 502 LYOCREDIT. This way, you won’t have to continuously watch market movements waiting for the price to reach your target price.
Continuing with our example, we will look at exactly how you can make a stop-limit order
1. Select [Limit] from the trading view to begin making your order.
2. Fill in the details of your stop price (trigger price), the limit price for the triggered limit order, and the amount of crypto you wish to purchase. Click [Buy LYO] to confirm the details of the transaction.
In our example, the stop price is 500 LYOCREDIT and the limit price is 502 LYOCREDIT.
3. Double check your stop-limit order carefully before finally clicking confirm to submit it to the exchange.
Once your orders have been submitted, existing ‘stop-limit’ orders can be found and reviewed in [Open Orders]. When orders are executed or discarded, your stop-limit order history can be found under [Order History].
Occasionally you may encounter problems with your orders when trading on LYOTRADE. We can divide these into two categories:
1. Your trade order is not executing
- Check the selected order’s price in the open orders section. Verify whether or not it has matched a counterparty’s order (bid/ask) with this price level and volume.
- If you would like to expedite your order, consider canceling it from the open orders section and submitting a new order at a more competitive price. For a quick settlement, you may also consider using a market order.
2. Your order has a more technical issue:
Issues like the inability to cancel your orders or coins not being credited to your account require further support. Please contact our Customer Support team and provide screenshots that’ll document:
- The order’s details
- Any error code or exception message
Grid trading is a type of quantitative trading strategy. This trading bot automates buying and selling on-spot trading. It is designed to place orders in the market at preset intervals within a configured price range.
Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. In this way, it constructs a trading grid.
LYOTRADE Spot Grid Trading performs the best in volatile markets when prices fluctuate within a specific range. Essentially, grid trading attempts to make profits on small price changes. Through quantitative trading, it helps you trade rationally and avoid FOMO where possible.
How does the Spot Grid Trading strategy work?
- 1.Log in to your LYOTRADE account and click [Trade] - [Strategy Trading] - [Spot Grid]. Select a trading pair.
- 2.Select either the [Arithmetic] or [Geometric] mode. Set the grid parameters, including the upper and lower price, grid number, and the coin to invest in.
1. Log in to your LYOTRADE account and click [Trade] - [Strategy Trading] - [Spot Grid]. Select a trading pair.
2. Select either the [Arithmetic] or [Geometric] mode. Set the grid parameters, including the upper and lower price, grid number, and the coin to invest in.
Spot Grid Trading parameters:
- In arithmetic mode, each grid has an equal price difference.
- In geometric mode, each grid has an equal price difference ratio.
- The more grids you include, the more funds you need to invest.
Lower Price: Bottom of the grid trading price range. The system will no longer execute orders when the market price is lower than the Lower Price.
Upper Price: Top of the grid trading price range. The system will no longer execute orders when the market price is higher than the Upper Price.
Divide the interval upper limit price and interval lower limit price into corresponding shares.
You can choose to invest in single or dual crypto.
For example, if you chose to invest by USDT, the strategy will only use USDT from your Spot Wallet. If you choose to invest in USDT+LYO, the strategy will use both USDT and LYO from your Spot Wallet.
Please note that the actual investment amount required for the Grid Trading strategy depends on the market and may not equal the amount you entered.
The available assets in your Spot Wallet.
Your grid creation might fail if there is insufficient balance in your Spot Wallet. Please note that the frozen assets from other open orders cannot be used to place new orders. You can cancel your open orders to utilize your available assets or adjust the number of grids to reduce the investment amount required to open orders.
The grid orders will be triggered when the Last Price rises above or falls below the trigger price you entered.
You can use Stop Trigger to stop trading when the market price triggers the set prices:
- Stop Loss: should be less than the lower price, last price, and trigger price; when the latest market price reaches the Stop Loss price, the grid will stop working.
- Take Profit: should be higher than the upper price, last price, and trigger price; when the latest market price reaches Take Profit price, the grid will stop working.
For example, if you create a USDT grid order with no trigger price, a certain percentage of LYO will be immediately bought at the market price for opening the grid trading. If you set a trigger price, the system will wait for the market price to hit the trigger before buying LYO at the set price.
If you have both USDT and LYO in your Spot Wallet, you can also choose to invest in USDT+LYO to avoid the additional expense (e.g. transaction fees) incurred when buying LYO.
Click [End] to stop grid operation. Running orders will be canceled and all profits will be settled immediately at market price.
Spot Grid Trading follows the spot market trading rules. You need to abide by the rules when placing orders.
1. For running orders:
To check your order progress, click the [Running] tab and click on the order icon next to the order.
You can check the order progress under each tab:
2. You will be redirected to the order details page.
You can check the order progress under each tab:
- Working: Your ongoing Grid trading orders;
- Completed: Orders already filled under this strategy;
- Grid Details: Details of your grid settings. You can still set or edit the Stop-Trigger price under Advanced Settings after the grid has been created.
3. For past orders:
Click on the [History] tab to check your grid trading history and view grid details of completed orders.
You can use the Grid Trading strategy to buy low and sell high. Let’s use USDT/LYOCREDIT as an example. Suppose your strategy parameters are set as below:
- Upper price: 60,000 LYOCREDIT
- Lower price: 40,000 LYOCREDIT
- Number of grids: 5
- Mode: Arithmetic
- Amount invested: 10,000 LYOCREDIT
- Current price of USDT/LYOCREDIT: 50,000 LYOCREDIT
The price structure of this strategy will be placed at 60,000 LYOCREDIT, 56,000 LYOCREDIT, 52,000 LYOCREDIT, 48,000 LYOCREDIT, 44,000 LYOCREDIT, and 40,000 LYOCREDIT according to the parameters you set.
LYOTRADE Spot Grid Trading uses normal grids. Orders are placed from the top grid to the bottom grid. When a buy order is filled, a sell order will be placed on the grid above it. As the upper price is set at 60,000 LYOCREDIT, the grid strategy will begin by placing a buy order at 56,000 LYOCREDIT. This buy order price is higher than the current price (50,000 LYOCREDIT), so in theory, it will be immediately filled. After the 56,000 order is filled, a new sell order will be placed at 60,000 LYOCREDIT. When the buy order at 52,000 LYOCREDIT is filled, a sell order of 56,000 LYOCREDIT will be placed accordingly and reaches the 48,000 LYOCREDIT grid. As the current price is 50,000 LYOCREDIT, the buy order at 48,000 cannot be filled, therefore no orders will be placed at 52,000 LYOCREDIT. Similarly, the buy orders at 44,000 and 40,000 LYOCREDIT will not be filled.
1. Why is my Grid Trading strategy terminated/canceled?
- The market price has hit the stop-trigger price you set.
- The trading pair of your strategy is delisted or will be delisted soon.
- The number of orders you have in the strategy has reached the maximum number you can place for that trading pair.
- There is insufficient balance in your Spot Wallet and orders cannot be placed.
2. Which wallet balance is utilized for Spot Grid Trading?
- Spot Grid Trading utilizes assets in your Spot Wallet to make investments. You can check the PnL of your running orders from the Spot Wallet history.
3. How is profit calculated if I manually cancel or close the Grid Trading strategy?
- All profits will be settled immediately at market price when you manually cancel or close the grid strategy.
4. How are the trading fees calculated?
- Spot Grid Trading follows the spot market trading fee rates. Please check the Trading Fee page for more details.
5. Why do I need to deposit trading fees in advance?
- When you launch a Spot Grid Trading strategy, you need to deposit a certain amount of the base currency as 'bid price'. It will be used as a reserve for deducting the Grid Trading fees. When the system detects that the reserve amount falls below half, it will automatically place buy orders for the base currency to refill the reserve. You can check the buy order details under the [Completed] tab on the Grid Trading order details page.
- The system will not freeze your assets when running the grid strategy. If you transfer the base and the quoted currencies out of your Spot Wallet when the Grid Trading strategy is still running, there is a risk that the available balance will be insufficient for placing the next order and might cause the strategy to be terminated. Therefore, please check your order status before transferring assets out of your Spot Wallet.
- If both the base and the quote currencies of your running grid strategy have enabled the automatic subscription function on LYOTRADE Savings, the transaction fees reserved will be automatically transferred to Flexible Savings, which might cause the grid strategy to be terminated due to insufficient balance. Therefore, please check whether you’ve enabled the automatic subscription function on LYOTRADE Savings for the base and the quote currencies before running the grid strategy.
6. What are base currency and quote currency?
Base currency and quote currency are the basic units of a trading pair. A quote currency is used to determine the value of the base currency.
For example, in the USDT/LYOCREDIT trading pair, USDT is the base currency and LYOCREDIT is the quote currency.
7. What does the order state represent?
- New: When the grid is created but not triggered.
- Working: After the grid is triggered.
- Expired: Grid trading strategy terminated.
- Canceled: The user manually ended the grid strategy.
8. Why is my Gird Trading order terminated after I canceled all spot trading open orders?
- All Grid Trading orders will be displayed under the [Open Order] tab on the Spot Trading interface. If you cancel an order that belongs to your Grid Trading strategy, the strategy will also be terminated.
- If you switch to the trading pair that is currently running Grid Trading, you will see a notification on the right of the screen, please check carefully before you cancel open orders.
Last modified 3mo ago