I saw an interesting case yesterday — one whale opened a 40x short on BTC and closed the position in profit, even though market makers were actively trying to liquidate him. How did he manage that? Most likely, he used a TWAP strategy, which allows large traders to exit positions without slippage.

So what is TWAP? Essentially, it’s algorithmic trading that works very simply — you take your huge order and split it into many small parts. Then these parts are executed evenly over time, not all at once. It sounds boring, but the effect is powerful.

Why does this work? When whales try to unload a large volume with a single order, they immediately move the price against themselves. The market sees the pressure, stop-losses trigger, panic ensues. TWAP strategy solves this problem — small orders don’t cause sharp jumps, and the price remains more predictable.

Where is this especially useful? In low-liquidity markets, TWAP is simply indispensable — even a relatively large order can cause wild price movements. Traders who think long-term and are willing to wait also use TWAP — for them, it’s more important to get a good average price than to execute everything instantly.

In general, TWAP is one of those tools that separates professionals from amateurs. Pros know how to properly exit positions without causing waves in the market. That’s why that whale was able to close in profit despite market makers trying to spread him out.