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Learn about the most important terms and concepts in 3Commas and cryptocurrency trading. This glossary is designed to help you understand essential jargon and trading strategies.

Updated this week

S

Safety Order

A feature in 3Commas bots that places additional trades if the market moves against the base order. Safety orders help to average down the entry price and improve the chance of closing trades profitably.

Scalping

A trading strategy focusing on making small, quick profits by entering and exiting trades frequently. Scalping can be automated using 3Commas SmartTrade or bots.

Short Position

A trade that profits when the price of an asset decreases. 3Commas allows users to create short strategies using SmartTrade or bots on supported exchanges.

Signal Bot

A bot that automates trades based on signals from external sources like TradingView or custom algorithms. 3Commas’ Signal Bots enable users to follow predefined or custom trading signals.

Slippage

The difference between the expected price of a trade and the actual execution price. Slippage often occurs in fast-moving markets with high volatility or low liquidity.

SmartTrade

A feature in 3Commas that enables manual trading with advanced options like trailing take profit, stop-loss, and conditional orders.

Spot Market

A marketplace where assets are bought and sold for immediate delivery. 3Commas supports Spot trading across multiple exchanges.

Stop-Loss (SL)

An order to automatically close a trade if the price falls below a specified level. 3Commas provides customizable stop-loss features to minimize losses.

Stochastic Oscillator

A technical analysis tool that measures momentum by comparing an asset's closing price to its price range over a specific period. It can be used in 3Commas trading strategies.

Swing Trading

A trading strategy that captures short- to medium-term price movements. Swing trading can be automated using 3Commas bots or manually executed with SmartTrade.

T

Take Profit (TP)

An order to close a trade when a predefined profit level is reached. 3Commas supports trailing take profit, which adjusts dynamically with market movements.

Technical Analysis (TA)

A method of evaluating price trends and market behavior using charts, patterns, and indicators. 3Commas integrates TA tools like RSI, MACD, and Bollinger Bands for strategy creation.

Terminal

The advanced trading interface in 3Commas where users can manage trades, set orders, and monitor portfolios across multiple exchanges.

Trailing Feature

A dynamic adjustment tool for stop-loss or take profit levels that "trails" the market price to lock in profits or minimize losses. Available in 3Commas SmartTrade.

Trading Pair

A combination of two cryptocurrencies or fiat currencies available for trading on an exchange (e.g., BTC/USDT). 3Commas supports trading pairs across numerous exchanges.

Trading Volume

The total quantity of an asset traded over a specific period. High trading volumes often indicate greater liquidity.

Trend Line

A line drawn on a chart to identify the direction of price movement. It helps traders spot support and resistance levels and is often used in 3Commas strategies.

U

Unrealized PnL

The profit or loss of an open position that has not yet been closed. 3Commas provides real-time tracking of unrealized PnL for active trades.

USD (United States Dollar)

The primary fiat currency used in cryptocurrency trading pairs. Many 3Commas users trade in USD or USDT-backed pairs.

Utility Token

A type of cryptocurrency designed to provide access to specific services or products. Utility tokens often play a role in decentralized finance (DeFi).

V

Volatility

The degree of variation in an asset's price over time. High volatility presents opportunities for traders but also increases risk. 3Commas tools help users navigate volatile markets.

Volume Weighted Average Price (VWAP)

A trading benchmark that calculates the average price of an asset based on both volume and price. It is commonly used for intraday strategies.

W

Wallet

A digital storage solution for cryptocurrencies. While 3Commas does not act as a wallet, it integrates with exchanges where funds are stored.

Wash Trading

A form of market manipulation where a trader buys and sells the same asset to create artificial activity. Wash trading is prohibited on all legitimate exchanges supported by 3Commas.

Whale

A term for an individual or entity holding a large amount of cryptocurrency. Whales can influence market prices with significant trades.

X

XRP

The native cryptocurrency of the XRP Ledger, designed for fast, low-cost cross-border payments. XRP is one of the many assets supported by 3Commas for trading.

Y

Yield Farming

A strategy in decentralized finance (DeFi) where users lend or stake cryptocurrency to earn rewards. While not directly linked to 3Commas, understanding yield farming is important for crypto traders.

YTD (Year to Date)

A performance metric that measures the change in value of an asset from the beginning of the year to the current date.

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