Before you launch any bot, the Bitsgap platform pre-defines a minimum balance required to start with the chosen parameters. If your balance has insufficient funds, then we will show you the following message:
The system calculates the minimum deposit based on the selected Grid Quantity and exchanges the minimum order amount and then compares it with the Investment.
If the Grid Quantity is changed then the required Investment also changes.
How is the minimum deposit calculated?
The bot places orders proportionally for all levels. The higher the Grid Quantity is, the more orders the bot will place.
Every exchange sets restrictions on orders, such as minimum order size and minimum order increment.
The minimum order size restricts the amount that can be used per order. As an example, for pairs traded against fiat (currency pairs that look like XXX/USD), it can be 5 USD or 10 USD per order. Consequently, it is impossible to place an order with 4 USD or less.
The minimum order increment determines how much it can be increased. For example, if the minimum order increment is 1.00 USD, the order size cannot be increased by 0.10 USD.
Hence, if the minimum order size is 10.00 USD, and the minimum order increment is 1.00 USD, you can place orders for 10.00 USD, 11.00 USD, 12.00 USD, etc., but it is not possible to place 8.00 USD or 12.30 USD per order.
Bitsgap receives information about both parameters from the exchange and applies these limitations into consideration.
Increasing the number of grids makes the required Investment higher
📑 Please note: we multiply the minimum order size by 2 so that when the price rises, we then do not reach the limit of the order and can place it without any problems.
If we want to run a bot with 180 grids, it would require a larger deposit since the bot would have to open 180 orders.
For example, on Binance, where the minimum order size for XXX/USDT currency pairs is 10 USD per order, we multiply it by 2, then a minimum investment with 180 grids would be 3 600 USD.
Please note that pairs like XXX/BTC or XXX/ETH (or any others where the quote currency is a cryptocurrency) have lower limitations, and launching a bot would require a much smaller Investment.
The minimum order size for all exchanges can be checked on the official websites of these exchanges. For instance, to learn more about Binance minimum order sizes you can follow this link - Binance Trading Rules.