Detailed Explanation
Why It Matters:
Minimizes market impact and slippage for big orders; achieves closer to average price during the period instead of one bad fill.
How It Works:
Algorithm divides order size by time intervals (e.g., every 30 seconds); places market/limit slices automatically.
Common Mistakes:
Too short period (still impacts market); during low-volume times (poor fills).
Related Terms:
VWAP, Algo Trading, Iceberg.
FAQs
Manual or auto?
Most CEX offer as order type or bot tool.
For spot or futures?
Both, but more common in spot/large caps.
