Algorithmic trading has gained popularity among traders for its ability to automate trades based on specific rules, eliminating emotions and hesitation. These strategies operate 24/7, reacting swiftly to price changes and handling large volumes efficiently. Execution algorithms, a subset of algorithmic trading, focus on entering or exiting positions without causing significant market impact. Passive order execution strategies like TWAP and VWAP aim to minimize slippage and provide fair average prices. TWAP evenly executes trades over time to reduce market impact, while VWAP factors in trading volume for a more accurate average price. Traders use VWAP as a benchmark and TWAP for discreet trading in low-liquidity environments. Real-world examples demonstrate the effectiveness of TWAP in minimizing slippage and securing favorable prices. Platforms like Kraken Pro offer VWAP as a technical indicator for traders to optimize their trades. Understanding when to use TWAP and VWAP can provide traders with a competitive advantage in the crypto market. Read more AI-generated news on: https://app.chaingpt.org/news