What is the TWAP strategy, thanks to which a whale that opened a short position with 40X at #BTC yesterday closed its position in +++ despite the fact that market makers were actively trying to liquidate it😁

TWAP (Time-Weighted Average Price) is an algorithmic trading strategy that breaks a large order into smaller ones and executes them evenly over a specified period of time.

How TWAP works:

Order splitting — the total volume of the trade is divided into small parts.

Even execution — these small orders are placed at equal time intervals.

When TWAP is used:

When trading large volumes — to avoid price slippage.

In low liquidity markets — where even a large order can cause a sharp price movement.

For long-term strategies — when the average price of the trade is more important than instantaneous execution.