Binance launches TWAP (Time-Weighted Average Price) function for hourly orders, breaking down large orders to reduce significant price fluctuations.

The centralized exchange Binance launched a new feature today on its coin-margined futures trading market ── TWAP (Time-Weighted Average Price), which is a time-weighted average price trading function. This feature primarily aims to reduce the impact of price fluctuations and insufficient liquidity on trading by utilizing the concept of average cost method when users trade.

Introduction to TWAP

TWAP stands for Time-Weighted Average Price, which refers to the average price calculated over a period of time. Through this trading method, users can specify a trading time period, and the system will divide large orders into smaller ones and execute them regularly during that period.

The following two scenarios are suitable for TWAP trading:

1. When the order size exceeds the liquidity provided by the order book, to avoid significant slippage
2. When there is no clear upward or downward trend, to average the buying cost through regular purchases

How to Set Up a TWAP Trading Strategy

1. Go to the Binance Futures market and select "Time Weighted Average Price" in the "Strategy Trading" menu.

2. After selecting the trading pair, the trading options settings will appear on the right side. In the "Total Quantity" section, enter the total quantity to be purchased, with a minimum quantity greater than 10,000 USDT; in the "Duration" section, enter the time frame to complete all trades, with a minimum of 5 minutes and a maximum of 24 hours. Once set up, you can choose to go long or short.

Note: This trading strategy can only be conducted in Coin-Margined Futures trading.

According to the instructions provided on the official website, after setting up the order, you can see the details of the trade under "Running," where you can observe the average execution price, order completion ratio, total trading volume, etc. If you wish to manually stop the trade, simply click on "Terminate."

Note: Manual trading, canceling trades, or closing positions for the same trading pair in Coin-Margined Futures will not affect the TWAP order size. Each account can have a maximum of 10 TWAP orders running simultaneously.

This content does not constitute investment advice. Contract trading carries extremely high risks, so please evaluate carefully before investing!