A
API (Application Programming Interface)
A tool that allows different software to communicate. In 3Commas, APIs connect your trading accounts on supported exchanges for automated trading and monitoring.
API Key
A unique code provided by an exchange, granting access to account functionality like trading and balance checking without exposing login credentials.
Arbitrage
A trading strategy that exploits price differences of the same asset across different exchanges. 3Commas does not currently offer arbitrage tools.
Ask Price
The lowest price a seller is willing to accept for an asset. Used in order books on exchanges.
Averaging
A trading strategy that spreads investments across different price levels to achieve a better overall entry price. Used by 3Commas' DCA bots to optimize cost efficiency.
Auto Trading
A feature that automates trading based on predefined rules. With 3Commas, auto trading can be executed via bots like DCA, SmartTrade, and Grid bots.
B
Backtesting
A process of testing trading strategies using historical data. 3Commas offers backtesting to help traders evaluate the potential success of a bot before deploying it in live markets.
Base Order
The initial trade amount placed by a bot when opening a position. It sets the foundation for safety orders in the DCA strategy.
Bear Market
A prolonged period of declining cryptocurrency prices. Traders can profit in a bear market using 3Commas' shorting strategies.
Bid Price
The highest price a buyer is willing to pay for an asset. Appears in exchange order books.
Bitcoin (BTC)
The first and most popular cryptocurrency, often referred to as "digital gold." Bitcoin trading is supported by all major exchanges in 3Commas.
Bots (Trading Bots)
Automated software that executes trades based on pre-set conditions. 3Commas offers DCA, Grid, and Signal bots.
Break-Even
The point at which a trader's gains equal losses, resulting in no profit or loss. 3Commas bots can be configured to close trades at break-even to minimize risk.
C
Candlestick Chart
A visual tool in technical analysis that displays price movements over a specific time period. Candlesticks are used in 3Commas to identify trends and reversals.
Close Price
The last recorded price of an asset in a given time period, as shown in candlestick charts.
Copy Trading
A trading feature that allows users to replicate the strategies of experienced traders.
Cross Margin
A margin mode where all available account funds can be used to maintain a position, reducing the risk of liquidation.
Cryptocurrency
A digital or virtual currency that uses cryptography for security. Examples include Bitcoin, Ethereum, and Solana, all supported by 3Commas.
Custom Signals
User-defined triggers for bots to act on. 3Commas allows traders to use TradingView alerts or their own algorithms to create highly personalized strategies.
D
DCA (Dollar-Cost Averaging)
A strategy that reduces the impact of market volatility by spreading investments over time or price levels. 3Commas’ DCA bots implement this strategy to optimize entry prices.
Deal Start Condition
Predefined criteria for a bot to open a trade. Examples include price crossing moving averages, RSI thresholds, or TradingView alerts.
DeFi (Decentralized Finance)
A financial ecosystem built on blockchain that removes intermediaries, allowing peer-to-peer trading and lending.
Demo Account
A risk-free simulation account provided by 3Commas, allowing users to test strategies and explore features without using real funds.
Depth Chart
A visual representation of buy and sell orders on an exchange, helping traders assess market liquidity.
Drawdown
The percentage decline from a trading account’s peak balance to its lowest point before recovery.
E
Entry Price
The price at which a trader opens a position. In 3Commas bots, this is set by the Base Order.
Exchange Connection
The process of linking a cryptocurrency exchange account to 3Commas via an API key, enabling automated trading and portfolio monitoring.
Exit Strategy
A plan for closing a trade to lock in profit or minimize loss, often involving stop-loss and take-profit levels.
Exposure
The total capital at risk in a trade or across a portfolio.
F
Fiat Currency
Government-issued currency such as USD, EUR, and JPY, often used as a trading pair with cryptocurrencies.
Fill Price
The price at which an order is executed on the exchange. It may differ from the expected price due to slippage.
Funding Rate
A periodic payment exchanged between long and short traders in futures trading, ensuring contract prices align with spot markets.
Futures Trading
Trading contracts that allow you to buy or sell an asset at a future date for a predetermined price. Futures on 3Commas support leverage and both long and short strategies.
Fast Connect
A simplified method of linking your exchange account to 3Commas via OAuth authentication, reducing the potential for manual input errors.
G
Gas Fees
Transaction fees required to execute actions on blockchains like Ethereum.
Glossary
A dedicated Help Center section defining 3Commas-related and crypto trading terms, making it easier for users to understand technical concepts.
Golden Cross
A bullish technical indicator where a short-term moving average crosses above a long-term moving average.
Grid Bot
A 3Commas bot that places buy and sell orders at set intervals, creating a "grid" of trades ideal for profiting in ranging markets.
GTC (Good-Til-Canceled Order)
A limit order that remains open until it is filled or manually canceled.
H
Hard Fork
A blockchain upgrade that creates a permanent split in the network, leading to a new version of the coin (e.g., Bitcoin Cash from Bitcoin).
Hedge Mode
A feature in futures trading that allows traders to simultaneously hold both long and short positions on the same asset.
High-Frequency Trading (HFT)
Automated trading that executes a large number of orders at extremely fast speeds, often used by institutional traders.
HODL
A term used in crypto slang that means holding an asset long-term despite market fluctuations, derived from a misspelling of "hold."
I
Imbalance
A condition in order books where there is a significant difference between buy and sell orders, potentially causing price volatility.
Impermanent Los
A risk in liquidity pools where the price of deposited assets changes significantly compared to when they were added.
Indicator
A tool used in technical analysis to predict market trends. Examples include RSI, Bollinger Bands, and MACD, all integrated into 3Commas charts.
Initial Margin
The minimum amount required to open a leveraged futures position.
IP Whitelist
A security feature that restricts API access to specific IP addresses, ensuring only trusted sources can access your exchange accounts linked to 3Commas.