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Published on Aug 5, 2022

Time Weighted Average Price (TWAP)

Sayli
#Glossary
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TWAP is a trading algorithm based on weighted average prices. The prices are of a particular asset, like NFTs calculated over a period of time. TWAP is determined when executing huge trade orders. The trader can divide a large order into several smaller ones valued at the TWAP price using the TWAP value because it is the most advantageous value.

With the help of TWAP, it is possible to spread out the trades over a certain time period and reduce the impact of trades on the prices.

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