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Binance Futures Launches TWAP (Time-Weighted Average Price) Feature


www.binance.com 01 November 2021 07:50, UTC
Reading time: ~2 m

Fellow Binancians,
Binance Futures has launched a new feature for users to implement TWAP (Time-Weighted Average Price) strategy on USDⓈ-M Contracts. Users can disperse a large order into smaller quantities and execute them at regular intervals to minimize price impact. It is now live on the Binance website and mobile apps.
What is TWAP?
TWAP (Time-Weighted Average Price) is the average price calculated over a period of time. TWAP trading algorithm aims to execute a trade over a user-specified period of time so that the average execution price is approximately in line with the time-weighted average price of that period.
How to set up a TWAP strategy?
  • Determine the trade size, which is the total size of the contract you choose to buy or sell. The minimum allowed TWAP strategy trade size is equivalent to 10,000 USDT. When a TWAP strategy completes all orders, the TWAP order will stop.
  • Select the duration, which is the targeted TWAP execution period. The minimum duration is 5 minutes, and the maximum is 24 hours.
Further information:
  • What Is TWAP (Time-Weighted Average Price) Strategy and How Does It Work
Risk Warning: Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements. The information here should not be regarded as financial or investment advice from Binance. All trading strategies are used at your discretion and your own risk. Binance will not be liable to you for any loss that might arise from your use of Futures. To learn more about how to protect yourself, visit our Responsible Trading resource page.

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