diff --git a/docs/strategy-advanced.md b/docs/strategy-advanced.md
index babcc5e7b..a0ae7201f 100644
--- a/docs/strategy-advanced.md
+++ b/docs/strategy-advanced.md
@@ -398,10 +398,10 @@ class AwesomeStrategy(IStrategy):
 ```
 
 !!! Warning
-    Modifying entry and exit prices will only work for limit orders. Depending on the price chosen, this can result in a lot of unfilled orders. By default the maximum allowed distance between the current price and the custom price is 2%, this value can be changed in config with the `custom_price_max_distance_percent` parameter.
+    Modifying entry and exit prices will only work for limit orders. Depending on the price chosen, this can result in a lot of unfilled orders. By default the maximum allowed distance between the current price and the custom price is 2%, this value can be changed in config with the `custom_price_max_distance_ratio` parameter.
 
 _Exemple_
-If the new_entryprice is 97, the proposed_rate is 100 and the `custom_price_max_distance_percent` is set to 2%, The retained valid custom entry price will be 98.
+If the new_entryprice is 97, the proposed_rate is 100 and the `custom_price_max_distance_ratio` is set to 2%, The retained valid custom entry price will be 98.
 
 !!! Warning "No backtesting support"
     Custom entry-prices are currently not supported during backtesting.
diff --git a/freqtrade/constants.py b/freqtrade/constants.py
index 2f51f45f7..cde276ac0 100644
--- a/freqtrade/constants.py
+++ b/freqtrade/constants.py
@@ -191,7 +191,7 @@ CONF_SCHEMA = {
             },
             'required': ['price_side']
         },
-        'custom_price_max_distance_percent': {
+        'custom_price_max_distance_ratio': {
            'type': 'number', 'minimum': 0.0
         },
         'order_types': {
diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index bd62934c5..caf201451 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -1407,9 +1407,9 @@ class FreqtradeBot(LoggingMixin):
         else:
             valid_custom_price = proposed_price
 
-        cust_p_max_dist_pct = self.config.get('custom_price_max_distance_percent', 2.0)
-        min_custom_price_allowed = proposed_price - ((proposed_price * cust_p_max_dist_pct) / 100)
-        max_custom_price_allowed = proposed_price + ((proposed_price * cust_p_max_dist_pct) / 100)
+        cust_p_max_dist_r = self.config.get('custom_price_max_distance_ratio', 0.02)
+        min_custom_price_allowed = proposed_price - (proposed_price * cust_p_max_dist_r)
+        max_custom_price_allowed = proposed_price + (proposed_price * cust_p_max_dist_r)
 
         if valid_custom_price > max_custom_price_allowed:
             valid_price = max_custom_price_allowed
diff --git a/tests/test_freqtradebot.py b/tests/test_freqtradebot.py
index 5b5e3ce28..21bad5c64 100644
--- a/tests/test_freqtradebot.py
+++ b/tests/test_freqtradebot.py
@@ -4595,7 +4595,7 @@ def test_get_valid_price(mocker, default_conf) -> None:
     patch_RPCManager(mocker)
     patch_exchange(mocker)
     freqtrade = FreqtradeBot(default_conf)
-    freqtrade.config['custom_price_max_distance_percent'] = 2.0
+    freqtrade.config['custom_price_max_distance_ratio'] = 0.02
 
     custom_price_string = "10"
     custom_price_badstring = "10abc"