Introducing TWAP Orders on Synthetix Perps

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Synthetix continues to ship new tools for traders.

TWAP (Time-Weighted Average Price) orders make it easier to scale into and out of larger positions, especially in long tail markets where liquidity can fluctuate and large single executions may significantly impact your fill price.

Rather than executing one massive order all at once, TWAP orders split execution into smaller slices over time. Here’s how you can use TWAP orders to level up your trading.

What is a TWAP Order?

A TWAP order breaks one large order into smaller executions distributed across a predefined duration.

This allows traders to gradually build or unwind positions while reducing the impact of any single execution on the market.

For example, instead of opening a single 100 BTC position immediately, a trader could split the order into smaller executions over a selected time period.

This is especially useful in environments where liquidity fluctuates or where traders want smoother entries and exits.

Averaging Through Market Volatility

One of the major benefits of TWAP orders is execution across predefined time intervals.

By averaging fills over time, traders can reduce exposure to temporary volatility, wicks, and short-term market fluctuations that may otherwise negatively impact execution.

TWAP orders can be configured anywhere from 5 minutes up to 24 hours in total duration.

Shorter durations help traders stay closer to the current market price while still reducing the impact of a single large execution. Longer durations allow for even smaller order slices and help smooth out short-term market fluctuations over a broader period of time, up to a daily average fill.

Longer timeframes are particularly useful for:

Highly volatile market conditions
Traders seeking smoother average execution over time

Very large orders relative to available liquidity

Reduced Market Impact

Another major benefit of TWAP orders is reducing the size of each individual execution.

Smaller order slices can help reduce market impact and provide smoother entries and exits in lower-liquidity or long tail markets.

Rather than forcing a single large fill into thin liquidity, TWAP orders distribute execution over time and across multiple smaller fills.

This can help traders avoid aggressively moving the market while managing larger positions.

How to Place a TWAP Order

To place a TWAP order on Synthetix Mainnet:

Open the trading interface
Select the advanced order dropdown, you may see an order type such as “Stop Market” currently selected. Simply click on the currently selected advanced order to choose a new advanced order type.
Choose “TWAP”
Choose your total duration from 5 minutes to 24 hours, either by entering a custom duration or by choosing from preset options.
Monitor your position as it fills. Your orders will be placed automatically every 30 seconds.