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Glossary

A comprehensive glossary of trading terms and Quant Dash-specific concepts.

A

ATR (Average True Range)

A volatility indicator measuring the average range of price movement over a period. Used to set dynamic stop losses and position sizing.

Auto-Hedging

Automatic opening of an opposing position when your main position exceeds a loss threshold. Protects against further losses while waiting for recovery.

Ask

The lowest price at which someone is willing to sell. Also called the “offer” price.

B

Basis Points (bps)

One basis point = 0.01%. Used to express small percentages.
  • 100 bps = 1%
  • 10 bps = 0.1%
  • 1 bp = 0.01%

Bid

The highest price at which someone is willing to buy.

Breakeven

The price at which your position has zero profit or loss after fees.

C

Cascade

A rapid series of liquidations causing accelerated price movement. Often triggers a “domino effect” of forced selling/buying.

Cluster (Grid Cluster)

A group of orders placed at specific price levels in a DCA strategy.

Counter Position

A position opened opposite to your main position, typically to hedge or scalp during adverse moves.

Cross Margin

A margin mode where all available balance is used as collateral for positions. Higher risk of total liquidation but more efficient capital use.

D

DCA (Dollar-Cost Averaging)

An investment strategy of spreading purchases over time/price levels to reduce the impact of volatility.

Decay Factor

In geometric sizing, the multiplier applied to each subsequent level. 0.92 means each level is 92% the size of the previous.

Donchian Channel

A technical indicator showing the highest high and lowest low over a period. Used for breakout detection.

Drawdown

The decline from a peak to a trough in your portfolio value. Usually expressed as a percentage.

E

EMA (Exponential Moving Average)

A moving average that gives more weight to recent prices. Faster to react than SMA.

Entry Price

The average price at which you opened your position.

F

Funding Rate

A periodic payment between long and short position holders in perpetual futures. Positive rate = longs pay shorts; negative = shorts pay longs.

Fill

When your order executes and becomes a position. A “partial fill” means only some of your order executed.

G

Geometric Grid

A grid where spacing between orders increases geometrically (exponentially) as you move away from current price.

Grid Refresh

The process of canceling existing orders and placing new ones as price moves.

GTFO (Get The F*** Out)

An exit strategy that aggressively closes positions when conditions turn adverse.

H

Hedge Mode

An exchange feature allowing simultaneous long AND short positions on the same symbol.

HFT (High-Frequency Trading)

Trading strategies that execute many trades per second. In Quant Dash, refers to fast-cycling market making.

I

Inventory

Your current position size. “High inventory” means you’re heavily positioned.

Inventory Skew

Adjusting bid/ask prices based on your current position to encourage rebalancing.

Isolated Margin

A margin mode where only the assigned margin is at risk for each position. Limits loss but may cause earlier liquidation.

L

Leverage

Multiplier for your position size relative to margin. 10x leverage = control 10,000with10,000 with 1,000 margin.

Liquidation

Forced closure of your position when margin is insufficient. Results in loss of position and possibly additional fees.

Liquidation Price

The price at which your position will be forcibly closed by the exchange.

Loss Management Tiers

Progressive risk reduction based on loss depth:
  • Tier 1 (100 bps): Widen spreads
  • Tier 2 (300 bps): Stop new entries
  • Tier 3 (600 bps): Exit priority only

M

Maker

An order that adds liquidity to the order book (typically limit orders). Usually has lower fees.

Market Making

A strategy of providing liquidity by placing both buy and sell orders, profiting from the spread.

Margin

The collateral required to open and maintain a leveraged position.

Microprice

A refined mid-price calculation weighted by order book depth on each side.

N

NATR (Normalized ATR)

ATR expressed as a percentage of price. Allows comparison across different price levels.

Net Delta

The combined directional exposure of all your positions.

O

OBI (Order Book Imbalance)

The ratio of bid volume to ask volume in the order book. High OBI suggests buying pressure.

Order Book

The list of all open buy and sell orders for a trading pair, organized by price.

Outer Distance

In Vortex DCA, how far from current price to place the furthest order.

P

Panic Threshold

The inventory level at which the bot becomes more aggressive about exiting positions.

Perpetual Futures (Perps)

Futures contracts with no expiration date. Settled via funding rate mechanism.

Position Size

The total value or quantity of your open position.

Q

Quote

A bid/ask price pair offered by a market maker.

Quote Size

The size of each individual order in your trading grid.

R

Ratio Power

In geometric grids, the exponent controlling how quickly spacing increases.

Reactive Spacing

Dynamic order spacing that adjusts based on market conditions (volatility, depth, flow).

Refresh Threshold

The price movement percentage that triggers grid recalculation.

S

SLAM

A high-velocity market making technique that quickly enters and exits during momentum moves.

Slippage

The difference between expected price and actual execution price.

Spread

The difference between bid and ask prices. Market makers profit from this.

Stop Loss

An order to close a position when price reaches a certain level, limiting losses.

T

Take Profit (TP)

An order to close a position when price reaches a profit target.

Taker

An order that removes liquidity from the order book (typically market orders). Usually has higher fees.

Time Decay (Position)

The principle that positions held longer without profit should be closed more aggressively.

Trap Detector

A system that identifies when your position is being “trapped” by adverse price movement.

U

Underwater

A position that is currently at a loss. “5% underwater” = 5% unrealized loss.

V

Virtual Chunking

A position recovery technique that mentally divides a losing position into chunks and recovers each separately.

Volatility

The degree of price movement. Higher volatility = larger price swings.

Vortex DCA

Quant Dash’s intelligent DCA strategy with geometric spacing and recovery features.

W

Wallet Exposure

The percentage of your total wallet allocated to a symbol or strategy.

Whale

A trader with large capital who can significantly move prices.

Whale Wall

A large order visible in the order book, often providing support or resistance.

Whiplash

Rapid back-and-forth price movement that can trigger multiple entries/exits.

X

XGrid

Quant Dash’s momentum-based strategy using EMA crossovers and Donchian channels.

XGrid Counter Scalp

Opening positions opposite to your main position when XGrid signals a trend reversal.

Numbers

11/23 EMA

The default EMA periods used by XGrid for crossover detection.

100 bps

One percent (100 basis points).

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