I recently saw an interesting case — a whale opened a short position with 40x leverage on BTC, and market makers actively tried to liquidate him. But the guy closed the position with a profit. How did he manage that? It’s simple — he used a TWAP strategy.

For those who aren’t familiar: TWAP is not just an abbreviation, it’s a whole trading methodology. Time-Weighted Average Price allows you to break a large order into many small parts and execute them evenly over time. It sounds simple, but it really saves you when working with large volumes.

The principle works like this: take your big order, split it into small pieces, and then place these pieces at regular intervals. This way, TWAP helps avoid sharp price jumps that usually work against the trader.

When is this especially useful? When trading serious volumes — your position won’t just cause a wave of liquidations. In markets with low liquidity, TWAP is indispensable because even one large order can flip the entire order book. Plus, it’s great for long-term strategies where the average price matters more than instant execution.

That’s why the whale was able to close his position profitably despite active opposition. TWAP allowed him to exit the position discreetly, in small portions, without giving market makers a chance to catch him. A good lesson for those working with large positions.