First, a clear answer: You need both modes, but by default you usually see "percentage," and when creating manually you must choose "amount" mode yourself.
In Binance grid settings, "grid spacing" has two ways to be expressed: one directly fills in a percentage, and one fills in a fixed amount difference. Which one to use depends entirely on your judgment of current market volatility.
Two Modes in Binance Grid
When creating a grid manually, the system asks you to choose a grid type, which directly determines the spacing unit.
Arithmetic grid: spacing is calculated by fixed amount. For example, if you set a BTC/USDT grid, each grid price difference is 100 USDT. Every price point in the grid is equally spaced.
Geometric grid: spacing is calculated by percentage. For example, each grid price difference is 0.5%. This method is more suitable for coins with large price swings, because it keeps each grid's amount span effective at high price levels.
Neither is absolutely better. The key is how you use it.
Comparing the Two in a Range Market
This decision affects your trading frequency and capital efficiency. One core principle is: the more grids you have, the higher the trading frequency, but the lower the profit per trade.
To make it clearer, here is a comparison of the two methods in actual trading:
| Comparison dimension | Spacing by "percentage" (geometric mode) | Spacing by "amount" (arithmetic mode) |
|---|---|---|
| Suitable coins | Coins with large price swings, such as altcoins | Coins with relatively stable prices and clear trading ranges, such as large-cap major coins |
| Range market performance | Performs better in wide range markets; buy and sell spreads are relatively balanced at high and low levels | Captures small moves more densely in narrow range markets |
| Trigger frequency | In low price zones with small moves, grid triggers are sparse; in high price zones with large moves, triggers are dense | As long as price stays within the set range, trigger frequency is relatively even |
| Operation note | A common default spacing is 0.5%-1% | Estimate based on the current price, and avoid setting too few or too many grids |
How Beginners Set Their First Grid
If you are opening a grid for the first time and cannot tell which method fits, here are two of the safest approaches:
Use "AI parameters" directly: This is the most beginner-friendly entry. Binance uses recent candlestick data to help calculate the price range and grid count, and also sets the spacing mode for you. You only need to fill in the investment amount.
Check "Popular strategies": If you do not want AI-calculated settings, go to the "Popular" tab and look at running strategies with good returns. Click "Copy" to bring over parameters that others have already tested, including grid spacing.
Risk Reminder: Do Not Set Too Tight or Too Wide
Too tight (spacing too small): Although trades happen very often, each profit is thin. Worse, in range markets, frequent trading fees may eat up most of your profit.
Too wide (spacing too large): The price may move back and forth inside the range but never touch your grid lines, leaving your capital idle and the strategy doing nothing.
How to Verify After Setup
After creating the grid, go to the "Running" bot details page and check the current "number of grids" and "profit per grid" estimate. If the estimated profit can cover fees and still make money, your spacing is set correctly.
