How to use the TWAP trading bot

Published on Dec 22, 2022
Updated on Apr 25, 2024

What are TWAP orders?

A TWAP (short for time-weighted average price) order is similar to an iceberg order in that it attempts to enter or exit a large position without significantly moving the asset’s price. Our TWAP bot is designed to execute a large trade over a specified period.

The main difference between the Iceberg bot and the TWAP bot is that the latter will place individual orders periodically over a set period of time, which is intended to minimise the impact on asset prices. This factor is especially important for illiquid markets where even small orders can swing the asset price in a direction that's less favourable to the trader. Note that the TWAP bot is best suited for advanced users.

Get started

How to place TWAP orders using the OKX trading bot

Step 1

Access the Trading Bot dashboard, then click TWAP from the Slicing bots menu.

Access the TWAP trading bot

Step 2

Select your desired trading pair and instrument using the menu at the top-left corner of the TWAP section.

Select TWAP order parameters

Step 3

Choose whether you want to buy or sell the first asset listed in the trading pair and input the price slippage you are willing to accept. Selecting Var. enables you to enter an amount denoted in the second asset from the trading pair. Selecting Ratio allows you to choose your slippage based on a percentage move from the price limit.

Select Var or Ratio

Step 4

Next, enter your desired price limit, the time interval at which you want the bot to make trades and the size of each buy or sell. Finally, enter the total trade amount and click Buy [asset].

Finalize TWAP order

Step 5

Check your trade details and click Confirm on the next screen to launch the bot. That's it!

If you experience any difficulties using the trading bot, feel free to contact our support team via the OKX Telegram group or our dedicated Support Center.

Start trading

THIS BLOG IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL OR HOLD DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

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