TWAP, or Time-Weighted Average Price, is a trading strategy used to execute large orders over a specified time period. The goal is to minimize the market impact of the trade by spreading it out evenly, which helps achieve a price that is close to the average price over that time. Traders often use TWAP in markets where liquidity is a concern, as it allows them to buy or sell without significantly affecting the stock's price. This method is particularly useful for institutional investors who need to manage large volumes while maintaining a balanced approach to market fluctuations.