# How is the profit per grid calculated?

The profit is generated from a price action within the grid. The profit per grid is a % price spacing between the corresponding buy and sell orders minus the % trading fee for both grids. The trading fee is always included in the spacing between the mentioned grids to make sure that a trading bot will not trade in negative.

Now let's look deeper into how the bot places the buy and sell orders in order to get profit. Let’s assume that the set grid step is 0.5% and the trading fee is 0.1%, so the bot builds the grid where the distance between the buy orders is 0.5%, and the distance between the sell orders is 0.5%. So for the executed buy order, the corresponding sell order will be placed at the distance grid step + x2 trading fee, i.e. 0.5% + 0.1%*2 = 0.7%.

As for the profit per grid calculation in this case, the spacing between the corresponding buy and sell order is 0.7% and the exchange's one-side trading fee is 0.1%, so profit per grid is 0.5%.

And here is why: To complete one buy and one sell order, we would need to pay our exchange 2 transaction fees for filled orders. This fee is included in pre-calculation, and then the spacing is adjusted accordingly to cover the exchange's fees and generate income.

Note
The exchange's commission is automatically remembered for your account after theyour first trade you make on Bitsgap.on Bitsgap.