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Introducing: Time Weighted Average Price (TWAP)

Jun 19, 2023UpgradesInstitutionsDerivatives
Disclaimer: This is a general announcement. Products and services referred to here may not be available in your region. Please refer to T&C for more details.

We're thrilled to announce the newest addition to our Derivatives platform: Time Weighted Average Price (TWAP)!

What is TWAP?

TWAP is a powerful trading strategy designed to optimize the execution of large trade orders. By dividing a large order into smaller orders and executing them at regular time intervals, TWAP aims to minimize market impact and achieve an average execution price that closely reflects the prevailing market conditions. This strategy helps traders mitigate sudden market fluctuations caused by large orders, enabling them to execute trades in a more controlled manner.

TWAP is widely used in algorithmic trading by institutional investors and hedge funds.

When Can I Use TWAP?

TWAP is particularly useful in the following scenarios:

  • When your order size exceeds the liquidity available in the pending order book.
  • When the current symbol does not exhibit a clear upward or downward trend.

How Does it Work?

TWAP is applicable to both Perpetual and Futures trading on Bybit, whether it's for opening or closing trades. It calculates the optimal time for order placement and execution based on the parameters set by the user.

For more information, check out our Help Center.

Take advantage of market volatility while minimizing risk!

Note: Display issues may occur in older versions of the Bybit App after placing TWAP orders. To ensure a seamless experience on the Bybit App, we highly recommend upgrading to version 4.19.0 at your earliest convenience.

If you have any questions or concerns, please feel free to reach out to our Customer Support team through Live Chat or by submitting a case via this form.

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