Trade Slicing

Trade slicing is an execution strategy that breaks a large parent order into smaller child orders to be executed over a period of time. This approach helps the trader mask their true size and intent, thereby reducing the immediate market impact and slippage.

Algorithms often use time-weighted average price or volume-weighted average price strategies to manage the distribution of these child orders. By blending into the natural flow of the market, the trader can achieve a better overall average execution price.

This is a standard practice for managing large institutional mandates in both traditional and digital asset markets.