So, if you start a long position with bitcoin at $90,000, that’ll count as position 1. Then, if you open another long position at $91,000, that’s position 2.
Basically, it’s the same coins but with two separate positions. Think of it like opening bitcoin as position 1 and then another coin as position 2.
On most exchanges, the total amount of bitcoin you use for both positions will just be seen as one single position.
I’m bringing this up because I want to give grid trading a go, and knowing this would really help me out on one exchange.
I'm not sure if there's any exchange that would offer such features. I use bybit for my crypto trading and when you open any position, you should use the amount you wish to open at your entry. Because if you add In more positions they just show up as a single one. I think this is because of the leverage they offer you as a trader.
One idea I think would help you is that some exchanges allow you to create subaccounts under your main account. You could potentially use each sub account to represent a different entry point.
I have used Binance, OKX, Bybit, Kucoin, HTX, BitMart, BitMez, Bitget, MEXC and few other exchanges before but I have not seen such feature before on exchanges.
I do not know the reason they do not have such feature that can make grid trading easier.
I can create more accounts on MEXC easily. Probably I may use that approach instead. Or go for subaccounts on other exchanges.
I noticed subaccounts on Bybit can not be used for derivative trading. Derivative trading is there but not working.
I have been in same position before where both positions were merged, sadly then I was in loss in one and got liquidated when it as merged. I have seen even some exchanges maybe they have corrected that you can even open position of different trades (short and long) of same pair.
As for the sub accounts I cant actually say but I have read it is allowed to open different positions even with same pairs and each has its own risk limit, but for me I dont like both accounts to be related so I have to bybit account, since they accept two to three different governments documents.
What I do before was to actually trade one on bybit and the other on KuCoin but we all know the price sometimes differs a little bit on each exchange
You can not if you use only one account.
It's possible if you use multiple accounts on one exchange, like you use a first account with trading positions used x2 leverage; a second account for trading positions with x5 leverages; and a third account with trading positions used x10 leverages.
By using different accounts and different leverages, you can manage your entry and exit as well as risk better. I mean you can calculate your entry, exit and liquidation price better, but this method contains risk of exchange policy. Using multiple accounts are likely not accepted by their ToS.
If you already used different exchanges, you can avoid risk of ToS violation by multiple accounts on one exchange easily. It's an approach to use different accounts on different exchanges with different leverages.
For example: Binance (2x leverage), OKX (5x leverage) and Bybit (10x leverage).
Does it make sense with you?
One thing I dislike about trading crypto on exchanges is this, you cant get to maximize your wins after seeing a very good trade to maximize and go all fully, like full margin or so. Forex trading does not work that way but one thing that distinct them from each other is that one of them pose more risk while the other makes you decide the risk youre willing to take from onset. You cant increase your risk to reward ratio while trading forex after seeing an opportunity that warrants so, but in trading crypto from exchanges, what you decide from beginning as your risk to reward ratio is what youll get unless you exit the trade and enter back using more leverage which is also a risk on its own. It would be better if they look more into this and make one to add more positions on same pair when already in a trade. Or do they do that to limit the risk one can take in a trade?
This is not available because just like what you mention it will just average your open position due its same coin.
You can use different exchange or another account since exchange like Binance allows multiple account using KYC of family member. This is the method of some trader that wants to open a long and short position at the same time on same coin on indecision market.
I used such feature a long time back, definitely it's not Binance but can't remember the platform which I used.
I guess it should be available on all exchanges right? Definitely people want to open multiple trades at different prices ranges for short and long term goals and by implementing such exchanges will attract more deposits into their cold wallets.
How about DEX, it is possible I guess?
On Bybit you can do this with different pairs, for example BTC/USDT, BTC/USDC, and BTC/USD. If you use the same pair, it will simply average the price.
90 000$ in futures is a lot, the risk is too high, though the profit that can be obtained is also high if you are sure about the position you are entering is fine.
But if in reality I would not do that in futures, maybe I can still do it in spot trading but not in Grid trading.
But since this is just like a hyperbolic question, maybe it is possible to set up such a trading activity. As long as there are set limits that only SL and TP are used,
I think that is okay.
Dude, he was just asking and just using an example. Read his post again. and the by stating $90,000 he was talking about the price of Bitcoin and not the position size.
It's OK to just let go if you have not understood what someone asked, rather than just reply anything just because you feel like replying. You simply end up embarrassing yourself and may look like a spammer to some members.
It seems like Binance doesnt offer such a feature or maybe I havent tried all the features there. I only switch between single asset and multi-asset mode in future trading but never tried opening two position on the same asset. Maybe I will try it in multi-asset mode where long position will be opened at different prices but unfortunately I dont have any USDT in my account yet.
If any of you have USDT or USDC in futures account, try it on multi asset mode because I think it is possible to open two positions on the same asset. It doesn't matter if I end up wrong, at least we will both know if it works.
There are sub-account features in most of the exchanges right now, and yes, one of their purposes is to open multiple positions. I believe you can have a different balance in different sub-accounts.
I believe this is allowed, in Bybit I have a main account and different sub accounts that are active.
Interesting take, and something I have not asked in many years, there used to be a forex site that automated it for you. You enter a trade and it suggested to do a few grid trades for you.
Is all the extra manual 'fixing' worth it though? Maybe on larger capitals but I feel like the increased hassle (since you can't find an exchange that automates) is offputting.
There was a time I tried it and it did not work. But I tried it now with $50 to open a long position and it worked. Although I can also easily switch from one account to another on MEXC which is not also against their terms of service. It would have been better if I can have this feature on a single account just as I explained above but I have no options than to try the subaccounts.
I expect people not to comment on subaccounts anymore. Just comment if you have seen what I am asking of on an exchange before. I know I can do this using subaccounts even before posting topic.
just make different accounts on DEX>
ApeX is one of my favorite, altho it cost money to pen accounts but they ask for no KYC what so ever.
I don't think there is any exchange that allow this.
I think its worth when your position opening as limit order not instant order, example when your first long position at $90000 and then put the second position increasing up to $91000 still available during your first order not filled yet. Not problem have several long or short position at the same exchange account during your order put as limit not instant order because margin fund will linked with your previous order before and not available for opening second order.
Its my experienced with Binance exchange market ever have two difference long position order, but I don't know rule another exchange market have the same with Binance or not. Usually after position filling you can't moving any more margin or future fund before taking profit but your fund from spot available for moving to future fund.
To hold a long and short position at the same time, you need to set the hedging mode in the settings. I can't speak for all exchanges, but Binance and Bybit definitely have this feature. Screenshot from Bybit.
Oshosondy, I remember earlier opening several long positions on Bybit at the same time with hedging mode enabled, but now I checked and it didn't work out for me.
@EL MOHA, hedge mode to open short and long position are on all derivatives exchanges that I have used before. I have used more than 10 exchanges with this feature. I think it is even the default on most exchanges but I am not sure about this second because immediately I visit a new exchange, I change everything necessary in the settings immediately but it has been long since I registered on a new exchange.
This would have been long ago because I have been using Bybit since 3 years ago but I did not see this feature.
As far as I understand your question, you will not be able to open long positions in one direction on CEX, but it is possible to do so on DEX. For example, you can open several Long or Short positions on the same asset on the GMX exchange or on Hyperliquid.