Time-weighted Average Price (TWAP)

DeFi

Time-weighted average price (TWAP) is a trading tool that calculates the average price of an asset over a specific time period, taking into account how long the asset was at each price. It helps traders understand the price movement over time.

Definition: Time-weighted average price (TWAP) is a trading tool that calculates the average price of an asset over a specific time period, taking into account how long the asset was at each price. It helps traders understand the price movement over time.

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