Will the contract grid explode?
The contract grid will explode. Contract Grid is an automatic trading strategy based on price fluctuation. It forms a certain price range with multiple price points in the exchange. When the price reaches the boundary of a grid, the system will automatically trade to obtain income. Contract grid trading is a high-risk trading strategy, and its profit and loss risk is related to the volatility and leverage ratio of the transaction. Therefore, if the grid setting is unreasonable or the leverage ratio is too high and the price fluctuates greatly, it will lead to the outbreak of grid strategy.