// TRADING TERMINOLOGY

What is TWAP (Time Weighted Average Price)?

An algorithmic execution strategy that calculates the average price of an asset over a specific time period.

In-Depth Explanation

TWAP is used by large institutions to execute orders slowly over time to minimize market impact, rather than executing a single large block trade.

"The hedge fund used a TWAP algorithm to exit their position over the course of the entire trading day."

A technical indicator that calculates the average price of an asset weighted by total volume traded during a specific period (usually daily).

The buying and selling of assets by large organizations, such as banks, hedge funds, and pension funds.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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