Futures grid FAQ – HashKey Global

1.How Is Margin Used in a Futures Grid Strategy?

When setting up a futures grid strategy, you’ll need to allocate margin to open and maintain positions. While the strategy is running, you can add margin at any time to improve margin health and reduce liquidation risk—without changing the grid parameters or how the strategy operates.

Shared margin within the same grid strategy (Cross-style): All positions and open orders under the same grid strategy share a common margin pool. Any additional margin you add will be applied across the entire strategy to support all positions and orders.
Isolated margin between different grid strategies: Each grid strategy has its own separate margin pool. Margin added to or used by one strategy does not affect the margin balance or risk level of other grid strategies.

2.Common Futures Grid Terms

Term	Description
Total PnL	Total profit or loss = current strategy asset value − total capital invested + margin added − margin reduced.
Realized PnL	Profit already locked in from completed grid cycles (buy → sell loops).
Unrealized PnL	Unrealized profit or loss = total PnL − realized PnL. This mainly includes floating PnL from open positions, funding fees, trading fees, or changes caused by strategy adjustments.
Total Grid Cycles	The total number of completed grid cycles (buy → sell). Each completed cycle counts as one arbitrage trade.
Estimated Liquidation Price	The estimated liquidation price based on current positions and allocated margin. This value updates dynamically as grid orders are executed.
Order Size per Grid	The contract size executed for each grid when buying low or selling high.

3.How Futures Grid Profits Are Calculated

3.1 Futures Grid Order PnL Metrics

Metric	Calculation Logic	What’s Included
Total PnL	Current account asset value − initial capital invested − total margin added	Realized PnL + unrealized PnL + all fees (trading fees, funding fees, etc.)
Realized PnL	Net profit from completed grid cycles (buy → sell loops)	Only includes price spread profits from closed grid orders
Unrealized PnL	Total PnL − realized PnL	Floating PnL from open positions + funding fees + part of trading fees

3.2 Realized PnL Calculation

Realized PnL is the total profit from all completed grid cycles. Only grids that have gone through a full buy → sell cycle are counted.

Single Grid Profit Formula

Single Grid PnL = (Avg. sell fill price − Avg. buy fill price) × filled quantity − buy fee − sell fee

Example

Price spread profit:

(111,500 − 111,000) × 0.0001 = 0.05 USDT

Realized PnL:

0.05 − 0.00222 − 0.00223 = 0.04555 USDT

Trade Details

Action	Size (BTC)	Price (USDT)	Fee (USDT)
Buy	0.0001	111,000	0.00222
Sell	0.0001	111,500	0.00223

3.3 Unrealized (Unpaired) PnL Calculation

Unpaired PnL = Total PnL − Realized PnL

Unpaired PnL refers to the portion of total profit or loss that cannot be attributed to completed grid cycles.

Unpaired PnL may include, but is not limited to:

Floating PnL from current open positions
Funding fees
Liquidation fees incurred when positions are force-closed
Partial trading fees: When positions are closed manually or outside a grid cycle, no grid arbitrage pair is formed. In such cases, the related closing fees are counted as unpaired PnL.

4.What Parameters Can Be Modified While a Futures Grid Is Running?

While a HashKey futures grid strategy is running, only the following actions are supported:

Take Profit / Stop Loss You can adjust TP/SL settings. When the latest market price reaches the configured level, the system will stop the grid strategy, cancel all open orders, and attempt to close positions as quickly as possible at the best available price.
Add Margin You may add more margin to the grid strategy to improve margin health and reduce liquidation risk.
Stop Grid You can manually stop the grid strategy. The system will cancel all open orders and attempt to close positions as quickly as possible at the best available price.

Note: Grid price range and grid order quantity cannot be adjusted while the strategy is running. Position size cannot be increased by adding orders once the grid is active.

5.Can Futures Grid Trading Result in Losses?

Yes.

Futures grid trading does not guarantee profits. Losses may occur due to:

Strong one-directional price movements (sharp uptrends or downtrends)
Sudden volatility causing missed fills or drawdowns
Accumulated trading fees and slippage
Liquidation risk amplified by leverage

In extreme market conditions, significant losses may occur.

6.Can Arbitrage Trades Result in Negative Returns When Using a Futures Grid?

Yes, this is possible.

Core Mechanism & Built-in Safeguards

When creating orders or modifying parameters, the system performs real-time calculations based on:

Your current fee tier (VIP level)
Strategy parameters such as price range and number of grids

The system only allows configurations where, under current market conditions, the price spread profit from one complete buy–sell grid cycle exceeds the total round-trip trading fees (maker fees). This mechanism is designed to provide a positive profit buffer at the setup stage.

Potential Risk Scenarios

Despite the above safeguards, risks may still arise under dynamic conditions:

VIP Level Changes If your fee tier is downgraded (for example, from VIP 3 to VIP 1), your actual trading fees will increase. As a result, the price spread profit per grid—under the original configuration—may no longer be sufficient to cover the higher fees, causing each grid cycle to generate a net loss instead of arbitrage profit.