Kraken Pro Adds TWAP Order Type for Large Trade Execution
(45 days ago) · 1 source · Summarized by CryptoBipto
Kraken has introduced Time-Weighted Average Price (TWAP) orders on its Kraken Pro trading platform. The feature is designed to allow traders to execute large orders by spreading them over time, aiming to reduce the price impact of sizable trades.
WHY IT MATTERS
When someone wants to buy or sell a very large amount of cryptocurrency at once, the sheer size of the order can push the price up or down before the order is fully filled — similar to how trying to sell a huge number of concert tickets all at once might force you to lower the price to find enough buyers. A TWAP order solves this by acting like a timer: instead of placing one giant order, it automatically splits it into many smaller orders spread evenly over a set period of time. This helps the trader get a more average price rather than a worse price caused by their own large trade. This feature is mainly relevant to professional or institutional traders, but its availability on a major exchange like Kraken shows that crypto trading platforms are increasingly offering the same sophisticated tools found in traditional stock and bond markets.
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- blog.kraken.com
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