One-line definitions of the terms used across Liquid Edge, Strategy Studio, and automated trading generally.
| Term | Meaning |
|---|
| API key | Credentials you create on your exchange so Liquid Edge can trade your account within set permissions. |
| Backtest | A run of a strategy against historical data to see how it would have performed. |
| Bot | A program that executes your trading rules automatically. |
| Condition | A testable statement about the market that is true or false right now. |
| Custody | Who holds your funds. Liquid Edge is non-custodial — you keep custody. |
| Drawdown | The peak-to-trough decline in account value. |
| EMA | Exponential Moving Average, weighted toward recent prices. |
| Entry | The rule that opens a position. |
| Execution | How a strategy places and manages orders once a condition fires. |
| Exit | The rule that closes a position (stop-loss, take-profit, or signal). |
| Funding rate | Periodic payment between longs and shorts on perpetual futures. |
| Term | Meaning |
|---|
| Leverage | A multiplier that increases both potential gains and losses. |
| Limit order | An order that fills only at your price or better. |
| Liquidation | Forced closure of a leveraged position when margin runs out. |
| Long | A position that profits if price rises. |
| Market order | An order that fills immediately at the best available price. |
| Non-custodial | A model where your funds never leave your own exchange account. |
| Open interest (OI) | Total number of open futures contracts on a market. |
| Order flow | The live stream of buy and sell orders hitting the market. |
| Term | Meaning |
|---|
| Paper trading | Simulated trading on live data with no real capital at risk. |
| Position size | How much of your account a single trade commits. |
| RSI | Relative Strength Index, a 0–100 momentum indicator. |
| Short | A position that profits if price falls. |
| Slippage | The gap between your expected price and the price you actually get. |
| Stop-loss | A predefined exit that caps a losing trade. |
| Strategy | A complete set of rules for entering, managing, and exiting trades. |
| Take-profit | A predefined exit that locks in gains at a target. |
| Timeframe | The candle interval a condition is evaluated on. |
| Trailing stop | A stop that follows price to lock in gains as a trade runs. |
| VWAP | Volume-Weighted Average Price, a fair-value reference. |
