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TWAP Orders

Last updated: Jul 23, 2026

TWAP (Time-Weighted Average Price) Orders allow traders to split a larger order into smaller orders executed gradually over a selected period of time.

This order type is designed to help traders distribute execution over time rather than relying on a single large order.

To learn more about other advanced order types, see Advanced Order Types.

Overview

TWAP Orders can help traders reduce market impact when executing larger positions during volatile market conditions.

By distributing execution over time, traders can reduce reliance on a single execution point and minimise slippage when entering or exiting positions.

This may help achieve a more balanced average execution price over the selected run time.

Common Trading Scenarios

Executing larger orders

A trader placing a larger order may want to reduce market impact by spreading execution over time rather than submitting a single large order.

This can help minimise price movement caused by a large immediate execution.

Trading volatile conditions

During periods of short-term volatility, traders may prefer to distribute execution over time instead of entering or exiting at a single market price.

This can help reduce sensitivity to sudden price swings.

Improving execution consistency

Traders may use TWAP Orders to achieve a more balanced average entry or exit price over a selected time period.

Rather than prioritising immediate execution, TWAP can help create more consistent execution outcomes.

How TWAP Orders Work

A TWAP Order divides a larger order into multiple smaller child orders executed gradually over the selected run time.

Instead of placing the entire order immediately, execution is distributed automatically at regular intervals until the full order is completed.

To configure a TWAP Order, traders select:

  • Order Size - The total size to be executed
  • Run Time - The total duration over which the order will execute (5 minutes–24 hours).
  • Execution Frequency - How often child orders are submitted throughout the selected run time (10 seconds–10 minutes).
  • Variance - An optional setting that applies controlled randomness to child order sizes and/or execution intervals. Both Quantity Variance and Frequency Variance can be configured between 1% and 20%.

The exchange automatically divides the total order into multiple child orders based on the selected configuration. Each child order executes independently and may fill at different prices depending on market conditions and available liquidity.

This can provide greater execution control compared to submitting a single large order.

Execution Settings

TWAP Orders provide additional execution settings that allow traders to customise how child orders are submitted.

Frequency

The Frequency setting determines how often child orders are submitted during the selected run time. Execution frequency can be configured between 10 seconds and 10 minutes.

More frequent execution creates a greater number of smaller child orders, while less frequent execution creates fewer, larger child orders.

The selected frequency is used as the baseline for execution. If Frequency Variance is enabled, the interval between child orders is randomly adjusted within the configured variance while preserving the overall TWAP run time.

Variance

Variance is an optional setting that introduces controlled randomness into TWAP execution while preserving the total order size and overall run time.

When enabled, traders can configure the following options:

  • Quantity Variance — Randomises the size of each child order within the selected percentage of the average child order size. Although individual child orders may be larger or smaller than average, the total quantity executed remains equal to the original TWAP order.
  • Frequency Variance — Randomises the time between child orders within the selected percentage of the configured execution frequency. While the interval between individual child orders may vary, the overall TWAP run time remains unchanged.

Both Quantity Variance and Frequency Variance can be configured between 1% and 20%.

A lower percentage produces execution that stays closer to the average child order size or configured execution frequency. A higher percentage allows greater variation, resulting in a less predictable execution pattern.

These settings do not change the total order size or overall run time.

How to Submit a TWAP Order

  1. Open the Trade Panel and select TWAP from the order type menu.
Open the order type dropdown in the trade panel and select TWAP. The panel updates to show run time, frequency, variance, and child order details for the TWAP configuration.
  1. Enter the total Value or Quantity for the order.
  1. Select the Run Time between 5 minutes and 24 hours.

    This determines how long the TWAP Order will remain active.
Enter the total value or quantity, then choose a run time using the hours and minutes fields or the quick duration buttons. The summary updates with running time, frequency, and child order details.

  1. Select the Execution Frequency.

    This determines how often child orders are submitted during the selected run time.

  2. (Optional) Enable Variance and configure:

    • Quantity Variance
    • Frequency Variance

      These settings randomise the execution pattern while maintaining the overall order size and run time.

  3. Click Buy / Long or Sell / Short.

Set the execution frequency, optionally enable Variance for quantity and frequency, then click Buy / Long or Sell / Short to continue.
  1. Review the order details and click Submit.

Once submitted, the exchange automatically executes child orders according to your selected run time, execution frequency, and variance settings until the order is fully executed or cancelled.

Important Considerations

  • TWAP Orders prioritise execution over time rather than immediate execution.
  • Market conditions may impact execution prices throughout the selected run time.
  • Child orders execute independently and may fill at different prices.
  • Execution frequency can be configured between 10 seconds and 10 minutes.
  • Optional variance settings introduce randomness to child order sizes and execution intervals while preserving the overall order size and run time.
  • TWAP Orders may take longer to fully complete depending on the selected configuration.