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