TWAP Order
TWAP Order (Time-Weighted Average Price)
A TWAP (Time-Weighted Average Price) Order is an advanced algorithmic order type that automatically breaks a large trade into smaller, evenly distributed fills executed over a defined time period. This approach helps reduce price impact and slippage, allowing traders to enter or exit large positions without disrupting market prices.
How TWAP Orders Work
When you place a TWAP order, Definitive’s algorithm:
Splits your total trade into multiple smaller fills, called segments.
Schedules execution of each segment over a user-defined time range - anywhere from 10 minutes to 30 days.
Monitors onchain market conditions throughout the duration, dynamically routing each fill through the optimal venue among 100+ integrated DEXs in Definitive’s smart order router.
Executes segments automatically, achieving an average fill price that closely tracks the time-weighted market average.
Fees: 25-50 bps. See Staking page for detailed rates.
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