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Placing a large order all at once can move the market against you. Prices may jump, liquidity can thin out and execution often ends up worse than expected. This is especially common in volatile or lower-liquidity markets, because when you trade matters just as much as what price you get.
TWAP orders are designed to solve this problem. Instead of executing a trade in one go, they spread it evenly over a set period of time. This helps reduce market impact and smooth execution. In this guide, you’ll learn what TWAP orders are, how they work on Bybit and how to place them step-by-step on both the website and the app.
Key Takeaways:
TWAP orders split large trades over time to reduce market impact
They work best when quality of execution matters more than speed
TWAP is available on both spot and derivatives markets on Bybit
Execution may pause if market or balance conditions change