Time-weighted average price

A TWAP strategy underpins more sophisticated ways of buying and selling than simply executing orders en masse: for example, dumping a huge number of shares in one block is likely to affect market perceptions, with an adverse effect on the price.

[1] A TWAP strategy is often used to minimize a large order's impact on the market and result in price improvement.

TWAP orders are a strategy of executing trades evenly over a specified time period.

Volume-weighted average price (VWAP) balances execution with volume.

A TWAP trade would most likely execute an even 50/50 volume in the first and second half of the day.