GMX introduces TWAP orders for onchain traders
GMX has further optimised the user experience for traders with the launch of Time-Weighted Average Price orders, allowing for more efficient execution of large leverage and spot orders.
Executive Summary
GMX introduces advanced Time-Weighted Average Price orders for both Perps and Spot swaps
TWAP order type allows a trader to automatically execute a large order in smaller parts, over a specified duration
TWAP functionality helps you enter sizable positions while minimising risk and price impact
What are TWAP Orders?
By popular demand, a new order type is now live on GMX: ‘TWAP’. TWAP orders are a sophisticated trading strategy used to minimise the impact of large orders on the market.
By breaking down a large order into smaller chunks, and executing them over a predefined time period, TWAPs aim to achieve an execution price close to the time-weighted average price. This method helps mitigate the risks associated with large price fluctuations and the price impact of big positions.
The TWAP feature on GMX is available for increasing and decreasing long/short leveraged positions (aka Perpetual swaps), as well as for Spot swaps.
Benefits of TWAP Orders on GMX
The integration of TWAP orders into GMX's decentralised perpetual exchange offers several advantages to traders:
1. Reduced Market Impact
By spreading out the execution of large orders over time, TWAP orders help to minimise the immediate impact on the market. This leads to more favourable execution prices and reduced price impact, making it an ideal strategy for traders looking to enter or exit big positions.
2. Enhanced Trading Precision
TWAP orders allow traders to execute large trades with greater precision. The systematic approach of dividing the order into smaller segments allows for more accurate timing and pricing, resulting in a more efficient trading experience.
3. Automation and Convenience
The introduction of TWAP orders on GMX brings automation to the forefront. Traders can easily set their desired parameters, and the protocol will handle the execution, freeing them from the need to constantly monitor the market. This convenience is particularly valuable for those managing large portfolios or executing complex trading strategies.
How to Use TWAP Orders on GMX
Utilising TWAP orders on GMX is straightforward. Traders can access the TWAP order feature through the GMX trading interface, by clicking the ‘More’ dropdown next to where you select the Market and Limit order type.
This More button provides access to all the special order types available on GMX, which include Take Profit, Stop Loss and Stop Market orders alongside the new TWAPs:
Once you’ve selected TWAP, enter your Pay token, the market you want to trade, and your position size and desired leverage, as usual. (You can also choose your preferred liquidity pool for this market, and what asset to hold your collateral in.)
Next, you specify the:
Duration: the period in hours and/or minutes over which the TWAP order should be executed
Number of Parts: how many chunks you want your TWAP order to be split into
Once these two elements are set, the protocol will automatically calculate the order’s frequency and the size of the partial trades for you.
GMX’s complete suite of order types
The introduction of TWAP orders marks another milestone for the GMX protocol, following the prior introduction of ‘Stop Market’ orders in February 2025. This latest upgrade ensures traders on GMX now have access to a complete suite of conditional orders and special order types:
Market orders
Limit orders
Take Profit orders
Stop Loss orders
Stop Market orders
TWAP orders
By offering these advanced trading features, GMX continues to demonstrate its commitment to providing user-centric design solutions for onchain traders.
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