Grid Trading Definition

[Igor 10]

An example of Grid Trading can be seen if a trader places a buying or selling orders 15 pips apart (creating a price grid) and is used because it does not rely heavily on market forecasting.

[4EverMaAT 10]

It is interesting to note that the definition does not indicate that grid formations focus on order entry into market. There is still no definition of the exit, or explanation as to how traders exit.

 

One possible exit strategy is to close all trades in the grid when the trades have collectively reached a net predefined profit target.