What's multiply placement?

Below is a detailed explanation and example of multiply placement.

If Multiply Placement is enabled, when the stock price gaps up or down by more than one grid, the system will place orders, and the total order quantity will be the quantity per order multiplied by the number of grids covered by the price jump.

Example: Grid trading is set up as shown below.

The base price is 170, and the simulated market price suddenly reaches 175.

• Multiply Placement enabled
  • Order quantity = (Latest price – Base price)/(Grid price interval) × Quantity of each order = (175 – 170) / 1 × 10 = 50
  • Trigger result: Sell 50 shares of AAPL
• Multiply Placement disabled
  • Order quantity = Quantity of each order = 10
  • Trigger result: Sell 10 shares of AAPL

Key takeaways:

• Function: Multiply placement is used to handle cases where the stock price gaps up or down, skipping multiple grids at once. It calculates the order quantity based on the magnitude of the price gap.
• When enabled: Order quantity = Number of grids skipped × Quantity of each order.
• When disabled: The trading is executed with a fixed quantity (quantity of each order), regardless of the number of grids skipped.

Disclosures

This article is for reference only and does not constitute any investment advice.