Glossary
Address book
"For security purposes, withdrawals can only be made to pre-registered whitelisted addresses. You can add approved withdrawal addresses on the Address Book page of your Account Settings page.
Please note, for Institutional accounts, Administrator approval is required to add a new withdrawal address."
TWAP order
TWAPs are orders executed over a specified run time (End Time Offset). The total order quantity is broken up into buckets based on the specified interval length. The quantity executed in each bucket is equal to the (total quantity)*((interval length) / (end time offset)). Each execution is a market order by default but can be combined with other order types such as limit orders. TWAPs are available on all trades on Terrace. Select TWAP in the order entry modal and fill out the selected quantity, length of execution, and frequency. Terrace automatically handles execution of all sub-trades.
Jitter
Jitter adds a randomized addition or subtraction (up to a set time you provide, ex 1 minute) to the time between TWAP legs. Jitter further obfuscates your trades and reduces front-running risk.
VWAP order
"VWAPs are an execution strategy where trades are spread out over a set period to achieve an average price close to the market’s Volume Weighted Average Price. VWAPs help minimize market impact by breaking a large order into smaller trades that follow the natural volume flow."
Iceberg order
Iceberg Orders are designed to conceal the true size of large trades, a capability that’s crucial for maintaining a competitive edge. Terrace’s Iceberg Orders break down large trades into smaller, hidden portions that are executed sequentially. Only a fraction of the total order is visible at any time, preventing the market from reacting to your full position. This helps you avoid slippage and execute trades without tipping off the market.
Slippage
Slippage is the difference between the expected price of a trade and the price at which it is executed.
Smart order routing
Smart order routing (SOR) is an automated process designed to find the best possible execution for an order by analyzing multiple trading venues and routing the order to the one offering the most favorable terms at the moment, so that your trade is executed in the most efficient way possible
Venue
Refers to the platform or marketplace where digital assets are traded, bought, or sold by market participants. It’s the equivalent of an exchange floor or brokerage in traditional finance. Common types of venues include centralized exchanges, decentralized exchanges, and Over-the-Counter (OTC) desks
Bid‑ask spread
The bid‑ask spread is the difference between the highest price a buyer is willing to pay for an asset (the bid) and the lowest price a seller is willing to accept (the ask). This spread represents a transaction cost for traders and indicates the liquidity of the market—the narrower the spread, the more liquid the market
Maker and taker
Maker fees apply when you provide liquidity (e.g., out of the money limit orders), while taker fees apply when you consume liquidity (e.g., market orders).
Gas fees
Gas fees are transaction fees paid on blockchain networks to compensate miners or validators for the computational resources used to process and validate transactions. Gas represents units of computational effort, and the fee equals the gas used multiplied by the gas price. Factors such as network congestion, transaction complexity and market gas prices influence how much a user pays
Know Your Customer (KYC)
Know Your Customer (KYC) refers to guidelines that require financial institutions and service providers to verify the identity, suitability and risk profile of customers. KYC is part of anti‑money‑laundering (AML) and counter‑terrorism financing regulations and helps ensure customers are who they claim to be
Anti‑money laundering (AML)
Anti‑money‑laundering (AML) refers to a global framework of laws, regulations and procedures aimed at detecting and preventing the process of disguising illicit funds as legitimate income. AML rules reduce the ability of criminals to hide profits and require institutions to perform due diligence on their customers
Secure multi‑party computation (MPC)
Secure multi‑party computation (MPC) is a subfield of cryptography that allows multiple parties to jointly compute a function over their private inputs while keeping those inputs secret from each other. MPC protocols let participants obtain a correct result without revealing their individual data
Multi‑chain
The term multi‑chain refers to the growing ecosystem of hundreds of blockchains. A multi‑chain application typically launches on several blockchains using separate smart contracts for each chain so that it can reach users across networks and address blockchain fragmentation
Decentralized exchange (DEX)
A peer‑to‑peer marketplace where users trade crypto assets directly via blockchain transactions. DEXs use smart contracts to facilitate trades, providing transparency and reducing counterparty risk because users keep control of their funds rather than depositing them with a central custodian
Centralized exchange (CEX)
A crypto trading platform run by a company that holds user funds and matches buyers/sellers.
Over-the-Counter (OTC) Venues
Private, off-exchange trading of large crypto transactions to avoid moving market prices.
Yield Farming
A DeFi strategy where users can earn rewards by supplying liquidity to decentralized exchanges or lending platforms. In return, liquidity providers receive a share of transaction fees and may also be rewarded with governance tokens, distributed in proportion to their contribution to the pool.
Margin Trading
Margin trading is a method that allows users to borrow funds to increase the size of their positions. By putting up collateral, traders can access leverage—amplifying both potential gains and potential losses. If the value of the position falls too much and the collateral is no longer sufficient, the position may be liquidated (automatically closed) to repay the borrowed funds. Fees and interest are typically charged on the borrowed amount.
Meme Coin
A type of cryptocurrency inspired by internet memes, jokes, or cultural trends, often created with little or no underlying utility or technical innovation. While some gain popularity through online communities and speculation, they are typically highly volatile and carry significant investment risk
Meme Trading
The practice of buying and selling assets—often stocks or cryptocurrencies—driven primarily by online hype, social media trends, and community sentiment rather than fundamental analysis. It is characterized by rapid price swings, speculative behavior, and high risk, as market movements are fueled by viral attention rather than intrinsic value.
Algo Execution
Automated trading strategies that place and manage orders based on algorithms, optimizing for speed, cost, or market impact.
Alpha Tilt
A parameter that shifts the execution schedule, either front-loading or back-loading trades depending on market expectations.
Active Limit
A setting that places dynamic limit orders, adjusting prices in real time with changing market conditions.
Assets Under Management (AUM)/Total Equity
The net worth of a portfolio, including cash, stablecoins, spot holdings, and unrealized PnL.
Basis Trading
A paired strategy of buying spot and selling futures to capture profits from price discrepancies.
Cross-Exchange Arbitrage
Buying on one exchange and selling on another to lock in price gaps, executed through smart order routing.
Directional Bias
A measure of portfolio tilt toward long or short exposure, derived from the net notional value of open contracts. Positive indicates bullish, negative indicates bearish.
Discretion
A parameter that adds controlled randomness into execution, lowering predictability and reducing detection risk.
Dynamic Limit Spread
A setting that defines the minimum spread needed to execute trades, ensuring profitability thresholds are met.
Exposure Tolerance
Adjusts execution pacing between trade legs to balance fills and reduce exposure when one side executes faster.
Funding Rate Arbitrage
A strategy that exploits funding rate differences between perpetual swaps and spot markets.
Gross Market Value (GMV)
The notional value of all open positions, calculated as spot, cash, and absolute notional value of derivatives.
Immediate-Or-Cancel (IOC)
An order that must fill immediately in full or in part, with any remainder canceled, routed to the best venue.
Implementation Shortfall (IS)
An execution path designed to minimize the gap between arrival price and final execution price.
Maker
A trader or order that provides liquidity by placing limit orders, earning maker fees when filled.
Market Impact
The effect large trades have on asset prices, which can be reduced through intelligent execution.
Market Maker (Strategy)
A strategy that places passive limit orders to reduce taker fees and impact, without providing continuous spreads.
Max Clip Size
Defines the largest allowed size of a single passive order within a larger trade, balancing visibility and speed.
Out-of-Limit (OOL) Pause
Temporarily halts execution if price moves outside the set limit, preventing fills at unfavorable levels.
Passive Only
A setting that ensures only maker orders are placed, avoiding liquidity-taking executions.
Participation Rate
The share of overall market volume a trader intends to participate in during a set period.
Participation Rate Limit
Caps the maximum percentage of market volume an order can interact with to prevent overexposure.
Pre-Trade Analytics
Forecasts and insights before execution, including cost estimates, participation targets, and market context
Slices
Smaller chunks of a larger order, managed automatically to reduce market impact and maintain anonymity.
Statistical Arbitrage
A quantitative strategy that exploits pricing inefficiencies between correlated assets.
Strict Duration
Forces execution to end at the set time, even if the full order quantity is unfilled.
Taker
A trader or order that removes liquidity by filling existing orders, typically incurring taker fees.
Target Participation Rate
A strategy that maintains a steady participation rate without a fixed duration.
Target Time
A strategy that centers execution around a specific event or time, optimizing trade timing.
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