Short Grid Boundaries
PnL Calculator
Map the edges of a short grid before deploying capital
A short grid earns when price drifts inside its range and stings hardest if price breaks above the upper edge. This view shows how the structure behaves at both boundaries so you can size the trade with eyes open.
Concentrated LP positions cannot be reproduced in short form, so this page focuses purely on the grid. Add an optional long hedge to cushion the upside breakout, and check how much it costs you on the way down.
Short Grid Configuration
XYZ / USDCShort Grid PnL Across Range
The amber line is the short grid value at each price. Toggle the hedge above to overlay the net curve.
Short Grid
Where this differs from long
A short grid mirrors a long grid in shape but the pain switches sides. The upper edge is the heavy loss — every push higher forces the grid to keep selling into strength while opened shorts bleed. The lower edge is a modest gain because the grid keeps closing shorts at lower prices.
For a like-for-like comparison with concentrated liquidity LP positions, switch back to the long-grid view — concentrated LP cannot be reproduced in short form, so it is intentionally hidden here.
Boundary breakdown
| Scenario | Short Grid |
|---|---|
| Price → $80.00 | +5.00% |
| Price → $120.00 | -15.00% |
Why Map Short Grid Boundaries First
Short grids are tempting in regimes where price has overheated and a cooldown looks likely, but their payoff is asymmetric: the downside surprise is a gentle profit while the upside surprise is a deep loss. Looking at both edges before launching keeps the asymmetry honest.
Sizing a Long Hedge with Intent
Adding a long leg can soften the upper-edge bleed, but the same long bleeds on the way down — the very scenario the short grid was designed to harvest. The auto-sizer balances both edges so the structure does not give away the modest gains chasing dramatic protection.
A Repeatable Pre-trade Framework
The biggest mistake with short grids is anchoring to the wrong upper boundary. Run a handful of widths through this view and look at the net payoff at the upper edge — that single number tends to expose whether the trade is rich enough to compensate the tail.