TWAP on Backpack
What Is TWAP?
TWAP, or Time-Weighted Average Price, is a built-in order type available on Backpack for both Spot and Margin trading. It automatically splits a large order into smaller parts and places them at regular time intervals until the total amount is filled.
This helps reduce slippage and avoids large price swings caused by placing one big order at once.
Why Use TWAP?
Reduce Slippage Prevent large price swings by splitting your order into smaller parts.
Lower Market Impact Your trades are less visible to the market—especially useful for high-volume trades.
Use with Spot or Margin TWAP works whether you’re trading directly or with leverage.
How to Use TWAP？
Overview
Item
Explanation
Total Quantity
The complete amount of the asset you intend to trade over the entire strategy duration
Sub-Order Size
The size of each individual order slice executed at each interval
Running Time
The total duration over which the strategy executes all sub-orders
Frequency
How often sub-orders are placed within the running time. Note: Higher frequency creates smoother execution but requires more market liquidity
Randomize
Each sub-order quantity is automatically adjusted within a range of up to 20% above or below the original quantity
Reduce Only
Orders can only reduce the size of an existing open position
Margin
Indicates whether the order utilizes leveraged positions
Example
Let’s say you want to buy 0.69 BTC using TWAP.
Your Settings:
Total Quantity: 0.69 BTC
Running Time: 1 hour
Frequency: 1 sub-order every 10 seconds
Sub-Order Size: ~0.00191 BTC per order
Margin Mode: On (you’re using leverage)
Result: Backpack will automatically place one order of ~0.00191 BTC every 10 seconds for one hour until the full 0.69 BTC is filled.
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