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Discover all the essential terms and concepts related to cryptocurrency trading and 3Commas features in one place.

Updated this week

J

JSON (JavaScript Object Notation)

A lightweight data format commonly used in web applications to store and transmit information. In 3Commas, JSON files are often used to define bot configurations or custom signals.

L

Leverage

The ability to trade with borrowed funds to amplify potential returns. In 3Commas, leverage is available for futures trading, offering both increased profit potential and risk.

Limit Order

A type of order that allows you to buy or sell an asset at a specific price or better. 3Commas supports limit orders through its SmartTrade and bot configurations.

Liquidity

The ease with which an asset can be bought or sold without affecting its price. High liquidity assets are preferred for trading as they allow smoother transactions.

Long Position

A trading position where a trader profits if the asset’s price increases. 3Commas offers tools to optimize long strategies using bots or SmartTrade.

M

MACD (Moving Average Convergence Divergence)

A technical indicator that shows the relationship between two moving averages of a security's price. It is used in 3Commas for creating strategies and monitoring trends.

Market Order

An order to buy or sell immediately at the current market price. Market orders ensure execution but may result in slippage during volatile markets.

Marketplace Signals

Pre-configured trading signals available in 3Commas Marketplace, allowing users to subscribe to proven strategies and automate trades.

Mean Reversion

A trading strategy that assumes an asset's price will return to its average or mean value over time. It can be implemented with 3Commas bots using indicators like Bollinger Bands.

Minimum Order Size

The smallest trade size allowed on an exchange. 3Commas automatically checks and enforces this limit to ensure compliance with exchange rules.

N

Net PnL (Profit and Loss)

The total profit or loss of a trading account after deducting fees and costs. 3Commas displays net PnL in its performance tracking tools.

Node

A computer or device that participates in a blockchain network by storing and validating transactions. While not directly tied to 3Commas, understanding nodes is critical for crypto traders.

Notification Alerts

Real-time updates provided by 3Commas to inform users about bot activity, trade executions, or price changes.

O

Order Book

A digital list of buy and sell orders for a specific asset on an exchange. 3Commas uses order book data for executing trades and determining bid/ask prices.

Overbought

A market condition where an asset's price has risen significantly, often followed by a correction. Indicators like RSI in 3Commas can help identify overbought conditions.

Oversold

A market condition where an asset's price has fallen significantly, often leading to a rebound. 3Commas tools can be used to capitalize on oversold opportunities.

P

PnL (Profit and Loss)

A measure of trading performance showing gains or losses over a specific period. 3Commas provides detailed PnL metrics for analyzing trades.

Portfolio Management

The process of tracking, analyzing, and rebalancing crypto holdings across multiple exchanges. 3Commas offers portfolio management tools for streamlined trading.

Position Size

The total value of a trade or investment in a single position. Calculating the correct position size is vital for managing risk.

Pump and Dump

A market manipulation scheme where an asset's price is artificially inflated ("pumped") before being sold off ("dumped"). 3Commas provides tools like trailing stop-losses to mitigate risks during such events.

R

Rebalancing

The process of adjusting a portfolio to maintain a desired allocation of assets. 3Commas offers automated rebalancing features to keep portfolios aligned with user goals.

ROI (Return on Investment)

A metric used to measure the profitability of a trade or strategy, expressed as a percentage of the initial investment.

Risk Management

Strategies and tools used to minimize trading losses. 3Commas offers features like stop-loss, trailing stop, and safety orders to help users manage risk effectively.

RSI (Relative Strength Index)

A momentum oscillator that measures the speed and change of price movements. RSI is available in 3Commas for creating strategies and monitoring overbought/oversold conditions.

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