BTSE has launched a new order type called “TWAP”, which is designed to help traders manage their orders more effectively on the exchange. This new order type is an excellent tool for traders who want to minimize the impact of sudden price movements on the execution of the trade or to execute a large order without disrupting the market.
What is a TWAP order?
TWAP stands for “Time-Weighted Average Price”. It’s a type of order that executes trades over a specified period to achieve an average price. Traders use this order type often when they want to execute a large order without causing large price movements or slippage in the market.
How does a TWAP order work?
The TWAP order works by dividing the total order size into smaller orders that are executed evenly over the specified period. For example, if a trader wants to execute a TWAP order for 100 BTC over 24 hours, the order might be divided into 4 BTC trades that are executed every hour. By executing smaller trades over a longer period, the trader can avoid causing large price movements and slippage in the market.
How to set up a TWAP order on BTSE?
Setting up a TWAP order on BTSE is straightforward. Here are the steps:
1. Select ‘TWAP’ from the upper-right corner of the Buy/Sell dashboard.
2. Enter the USD amount or quantity of an asset that you would like to buy or sell, along with a time interval (period fields) for execution. This can be in hours, minutes, or both.
3. Place the TWAP order, then you’re all set!
Final thoughts
TWAP orders are a useful tool for traders who want to execute large orders in a controlled manner, without impacting the market. By using this order type, traders can achieve a more favorable average price and reduce the risk of slippage and other market disruptions. With BTSE’s new TWAP order type, traders can now manage their orders more effectively on the exchange.
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Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.
