1. Application Scenarios

• Volatile Markets: When the market lacks a clear direction and prices fluctuate significantly, contract grid trading can help capture volatility and generate profits.
• Short-term Fluctuations: Suitable for markets with significant short-term price volatility.
• No Obvious Unilateral Trend: Suitable for hedging risks with long and short contract grid strategies.

2. Suitable Investors:

• Medium to High-Risk Appetite Investors: Suitable for those with a certain risk tolerance who wish to amplify returns through leverage.
• Trend Traders: Capturing opportunities in both long and short directions during market oscillations.
• Experienced Contract Traders: This product is suitable for investors with a good understanding of the contract market.

3. Risks to Be Aware Of:

• Leverage Risk: Contract trading uses leverage, which amplifies risk. If the market experiences a significant unilateral trend, it may lead to liquidation.
• Insufficient Margin: During intense market volatility, if there is not enough margin to support positions, forced liquidation may occur.
• Unilateral Market Risk: If Bitcoin prices break through historical highs and continue to rise, grid trading may result in frequent openings, increasing the risk of losses.
• Transaction Fee Costs: Too many grid points and frequent trading may increase transaction fees, affecting overall returns.
• Take Profit and Stop Loss Settings: Set appropriate take profit and stop loss points to avoid excessive losses due to sudden market fluctuations. For example, pause the strategy if a single grid loses more than 5% of total funds.