In the past, it has been regarded as one of the most effective methods for trading currencies both in trending and range markets, which makes it suitable for trading at all times. The trading strategy's premise is equally basic. In order to be referred to as "forex trading," there should be a grid of orders above and below the target price level. When the market is trending, you can open a grid with buy and sell orders 20 pips apart.

If traders want to use this method in range markets, they should place buy orders below the price level. Since this method does not require an in-depth analysis of the direction any individual Forex market is headed, it is one of the most automated ways of ordinary complexity. Market trending or rangebound conditions allow participants to increase their holdings through grid trading.

This Forex trading strategy is most successful when currency prices rise steadily. Because of the unstable and choppy grid levels, price-hitting orders on both sides might result in a trader losing money. Less position management equals lesser risks for the trader with a smaller grid.