You can think of the reserved margin in Futures Grid as a dedicated backup fund set aside specifically for this grid strategy. It is used to handle adverse price movements. It is separated from the other funds in your futures account and only serves this one grid bot.
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Why the grid bot needs this dedicated backup fund
The Futures Grid mechanism works like this: when the price fluctuates within a range, the bot automatically buys low and sells high. During this process, once you open a long position and the price starts to fall, the bot will continue buying according to the grid. Every new buy order requires margin.
If the price drops to the very bottom of your set grid range and all funds have been used up, all pending orders from the bot have been filled. If the price keeps falling after that, the account's maintenance margin will no longer be enough, which will directly trigger liquidation and immediately terminate the entire strategy.
Therefore, reserved margin is not an extra fee. It is the total budget you put into this grid strategy. It determines how wide a price fluctuation your grid bot can withstand.
How this money works in practice
Case A: I plan to run this grid for a long time
Then you should set aside enough reserved margin from the start. The more grids you have and the wider the price range, the more reserved margin you need. If the reserved amount is too small, the account may be liquidated before the price even reaches the bottom of the grid.
Case B: The market is volatile and the margin becomes insufficient while the grid is running
Futures Grid supports manually adding margin while the strategy is running. You can click Add Margin on the strategy details page to transfer more funds from your spot account or futures account into this grid, pushing the liquidation price further away.
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How to set reserved margin
Generally speaking, the more grids you have, the wider the price range, and the greater the market volatility, the more reserved margin you should set. It is recommended to use no more than 15% of your total account equity as the initial margin for a single grid, and at the same time set the liquidation price beyond the expected lower boundary of your grid. Leave some room and do not set it right at the extreme limit.
