Grid Trading

A foreign exchange trading technique that seeks to capitalize on normal price volatility in currency markets by placing buy and sell orders at certain regular intervals above and below a predefined base price. Such buy and sell orders, generally spaced at 10- or 15-pip intervals, create a trading grid.

The biggest advantages of grid trading are that it requires little forecasting of market direction, and can be easily automated. Major drawbacks, however, are the possibility of incurring large losses if stop-loss limits are not adhered to, and the complexity associated with running multiple positions in a large grid.


Investment dictionary. . 2012.

Look at other dictionaries:

  • New Electricity Trading Arrangements — (NETA) is the name of the system under which electricity is traded in the United Kingdom s electricity market [1] [2]. Contents 1 Overview 2 BETTA …   Wikipedia

  • Super grid — Supergrid redirects here. For other uses, see Super grid (disambiguation). One conceptual plan of a super grid linking renewable sources across North Africa, the Middle East and Europe. (DESERTEC) A super grid is a wide area transmission network… …   Wikipedia

  • Carry Grid — A foreign exchange trading strategy that attempts to profit from a grid of carry trade currency positions. A carry grid entails the purchase of currencies that pay relatively high interest rates, and the concurrent sale of currencies that have… …   Investment dictionary

  • Emissions trading — (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is sometimes called cap and trade.A central authority (usually a government …   Wikipedia

  • National Grid (Great Britain) — For the UK Ordnance Survey National Grid for mapping co ordinates in Great Britain, see Ordnance Survey National Grid. 400 kV power line in Cheshire The National Grid is the high voltage electric power transmission network in …   Wikipedia

  • National Grid plc — Type Public limited company (LSE: NG., NYSE:  …   Wikipedia

  • Sonic X Trading Card Game — Infobox Game | subject name= Sonic X Trading Card Game image link= image caption= designer= David Eckhard publisher= Score Entertainment players= 2 ages= 7+ setup time= playing time= Approx 20 min complexity= strategy= random chance= Some skills …   Wikipedia

  • Control of the National Grid — The National Grid is the high voltage electric power transmission network in Great Britain, connecting power stations and major substations, and has a synchronized organization such that electricity generated anywhere in Great Britain can be used …   Wikipedia

  • National Grid Reserve Service — In order to balance the supply and demand of electricity on short timescales, the UK National Grid has contracts in place with generators and large energy users to provide temporary extra power, or reduction in demand. These reserve services are… …   Wikipedia

  • North Sea Offshore Grid — The North Sea Offshore Grid, officially the North Seas Countries Offshore Grid Initiative (NSCOGI), is a collaboration between EU member states and Norway to create an integrated offshore energy grid which links wind farms and other renewable… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.