What is the definition of TWAP in the context of cryptocurrency trading?

3 answers

• Dec 15, 2021 · 3 years ago
  TWAP stands for Time-Weighted Average Price. It is a trading strategy commonly used in cryptocurrency trading. TWAP aims to execute a large order over a specific time period, typically a day, in order to minimize market impact and achieve an average price. This strategy is important because it helps traders avoid sudden price fluctuations and allows for more controlled execution of trades. By spreading the order out over time, TWAP helps to reduce the impact on the market and ensures that the trader's order does not significantly affect the price of the asset.
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• Dec 15, 2021 · 3 years ago
  TWAP is an abbreviation for Time-Weighted Average Price. In the context of cryptocurrency trading, it refers to a trading strategy that involves executing a large order gradually over a specific time period. This strategy helps to minimize market impact and achieve a more favorable average price. Traders use TWAP to avoid sudden price movements and to ensure that their trades are executed in a controlled manner. By spreading the order out over time, TWAP allows traders to avoid causing significant price fluctuations in the market.
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• Dec 15, 2021 · 3 years ago
  TWAP, which stands for Time-Weighted Average Price, is a trading strategy used in cryptocurrency trading. It involves executing a large order over a specific time period, such as a day, in order to minimize market impact. This strategy is important because it helps traders avoid sudden price fluctuations and allows for more controlled execution of trades. By spreading the order out over time, TWAP aims to achieve an average price that is representative of the market conditions during the trading period. Traders often use TWAP when they want to minimize the impact of their trades on the market and ensure that their orders are executed at fair prices.
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