what is #TWAP option on Binance trading?
How does this help you? Why should you use
it and when? well, you came to the right
place, this is crypto knowledge at its best 🤙
In essence, TWAP buying is a go-to for efficiently executing big orders while minimizing market price impacts.
TWAP, or Time-Weighted Average Price, is a
trading bot method on Binance futures where orders are gradually executed over a set time to achieve an average price over that period. Here's the rundown:
Time Period: Traders pick a duration for order execution, like an hour.
Execution: Binance automatically executes parts of the order at regular intervals, based on the trader's timeframe.
Price Calculation: The system averages prices during each interval, lessening the impact of sudden market swings.
Advantages: TWAP helps avoid big price swings affecting the overall price, reducing market impact by spreading out the order execution.
Hope that helps, guys
See you guys at the top! 👊
