What is the Coin-M Futures Grid Bot?
Before understanding how the Hedging Strategy works, we recommend first reviewing the “Coin-M Futures Grid Bot” article to gain a general understanding of how the Pionex Coin-M Futures Grid Bot operates.
What is Hedging?
Hedging involves opening a COIN-M 1x short position (coin-backed) to sell crypto while preserving USD-denominated value, thereby safeguarding USD-based assets. For futures grid hedging, profits are generated through grid interval fluctuations:
Price drops: Earn more crypto by buying at lower intervals.
Price surges: Sell crypto at higher prices.
Simultaneously, you earn grid volatility arbitrage profits and funding rate revenue. With 1x leverage posing no liquidation risk, this strategy ensures stable value preservation and dual-profit potential. Its grid mechanism aligns with standard futures grids.
Key Features of Hedging
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Profit in Bull & Bear Markets:
Bearish: Earn crypto as prices drop.
Bullish: Sell crypto at higher prices.
Grid Volatility Arbitrage – Profit from price fluctuations within grid intervals.
Funding Rate Revenue – Earn fees from maintaining short positions.
Zero Liquidation Risk – 1x leverage eliminates the risk of bankruptcy.
Which scenarios are suitable for the bot?
Bearish: Earn Crypto
Use Case: Anticipate a price peak or downturn.
Example: Open a BTC hedging grid at $100,000. As prices drop, the COIN-M 1x short position automatically accumulates more BTC. Earn additional profits from grid arbitrage and funding rates.
2. Bullish: Sell at Higher Prices
Use Case: Avoid selling too early during rallies.
Example: Open a hedging grid at $100,000 with a $90,000–$150,000 range. Sell BTC gradually, achieving an average exit price of around $130,000. Earn profits from grid arbitrage and funding rates.
How to Set Up a Coin-M Hedging Grid Bot Strategy?
To get started, simply follow the tutorials on the Coin-M Futures Grid Hedging strategy and create your first Hedging Bot today.
In APP：
Step 1: Open the Pionex app and click on [Bot] in the bottom menu bar, then click on [Create] - [Futures], where you will find the "Coin-M Futures Grid Bot" option.
Step 2: Once you are in the “Coin-M Futures Grid” section, you can select your preferred Coin-M Futures pair, then choose “Copy Strategy” and click on “Hedging”. The system will recommend corresponding AI strategies, allowing you to select your preferred option by clicking the [Copy bot] button.
Step 3: You can also choose “Customize” to manually set up your grid parameters and create a grid.
Step 4: After copying the strategy, enter your investment amount, and then click [Create] - [Confirm] to place your bot order.
On the Web：
Step 1: Log in to your Pionex account, click on [Futures] in the top menu bar, then click on [Futures Bot], where you will find the "Coin-M Futures Grid" option.
Step 2: Once you are in the “Coin-M Futures Grid” section, you can select your preferred Coin-M Futures pair, then choose “Copy Strategy” and click on “Hedging”. The system will recommend corresponding AI strategies, allowing you to select your preferred option by clicking the [Copy bot] button.
Step 3: You can also choose “Customize” to manually set up your grid parameters and create a grid.
Step 4: After copying the strategy, enter your investment amount, and then click [Create] - [Confirm] to place your bot order.
Coin-M Hedging Grid Bot FAQ
Q: How does Hedging differ from standard contract grids?
A: Hedging uses COIN-M 1x short contracts as its core mechanism, sharing identical fees and operational logic with standard grids.
Q: How does Hedging differ from Arbitrage?
A: Arbitrage: Short perpetual futures while holding equivalent spot positions to profit solely from funding rates
Hedging: Combines COIN-M 1x shorts with grid trading, enabling profits from price drops (crypto gains), surges (USD gains), and funding rates.
Q: Is hedging better for bearish or bullish markets?
A: Both.
- Bull Markets: Use hedging to lock in gains as prices peak or to exit gradually.
- Bear Markets: Profit from falling prices.
Sideways Markets: Earn from funding rates and grid arbitrage.
Q: Can Hedging grids liquidate?
A: No. The 1x short position ensures zero liquidation risk.
Q: Do I lose money if prices keep rising?
A: Your USD-denominated balance increases as prices rise, but profits may lag behind holding/bullish strategies. For sustained rallies, consider futures grid longs for higher returns.
Please get in touch with Pionex Support if you have any other questions.
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