# TWAP

A TWAP (Time-Weighted Average Price) Order is an algorithmic trading strategy that splits a large order into smaller trades and executes them evenly over a specified time period. The goal is to achieve an average execution price close to the market’s time-weighted average price.

### **When to Use?**

* When executing a **large order** that might otherwise move the market if placed all at once.
* Suitable for **institutional traders or whales** seeking discreet execution with minimal market impact.
* When you want steady execution over time, rather than immediate fulfillment at one price.

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### **Key Points**

* Helps minimize slippage and reduce market impact.
* Execution is spread out over time at regular intervals.
* Full order is usually completed as long as there is sufficient market liquidity.
* Focuses on achieving a price close to the **average over time**, not a specific single price.

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### Key Parameters

<table data-header-hidden><thead><tr><th width="156"></th><th></th></tr></thead><tbody><tr><td><strong>Item</strong></td><td><strong>Explanation</strong></td></tr><tr><td><strong>Total Quantity</strong></td><td>The complete amount of the asset you intend to trade over the entire strategy duration</td></tr><tr><td><strong>Sub-Order Size</strong></td><td>The size of each individual order slice executed at each interval</td></tr><tr><td><strong>Running Time</strong></td><td>The total duration over which the strategy executes all sub-orders</td></tr><tr><td><strong>Frequency</strong></td><td>How often sub-orders are placed within the running time. <em>Note: Higher frequency creates smoother execution but requires more market liquidity</em></td></tr><tr><td><strong>Randomize</strong></td><td>Each sub-order quantity is automatically adjusted within a range of up to 20% above or below the original quantity</td></tr><tr><td><strong>Reduce Only</strong></td><td>Orders can only reduce the size of an existing open position</td></tr><tr><td><strong>Margin</strong></td><td>Indicates whether the order utilizes leveraged positions</td></tr></tbody></table>


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