The **Impact Minimization** strategy is designed for traders who prioritize reducing market impact while maintaining execution efficiency. It follows a [**VWAP (Volume Weighted Average Price) trajectory**](/creating-and-submitting-orders/advanced-settings/trajectories/vwap.md), ensuring trades are distributed over time to minimize price disruption.
**How It Works**
* Users specify a **duration**, defining the execution time frame.
* The engine prioritizes **maker execution** to optimize cost efficiency but will use **taker execution** when necessary to stay within the set duration.
* Orders are executed **incrementally** along a VWAP trajectory, ensuring small portions of the trade are spread out over time.
* Market impact relative to **arrival price** is minimized through passive execution.
* Execution dynamically adjusts based on **real-time market conditions**.
**When to Use This Strategy**
* **Fixed Duration Execution** – Suitable for traders who need execution over a **specific time frame**.
* **High Sensitivity to Market Impact** – Helps reduce market disruption when executing **large orders**.
* **Manageable Taker Fees** – Works best when taker fees are reasonable, ensuring cost-effective execution.
* **Market-Aware Execution** – The engine continuously adapts to market conditions to optimize order placement.
**Potential Drawbacks**
* **Higher Variance in Execution Outcomes** – Market conditions can impact final trade results.
* **Fixed Duration Constraints** – If liquidity shifts unexpectedly, taker execution may increase to meet the deadline.
* **Limited Flexibility for Short Durations** – Shorter execution windows may reduce the ability to optimize order placement.
This strategy is ideal for **large trades requiring minimal market impact** while leveraging **market-aware execution** for cost efficiency.
#### **Impact Minimization Configurations**
| [Trajectory](/creating-and-submitting-orders/advanced-settings/trajectories.md) | [VWAP](/creating-and-submitting-orders/advanced-settings/trajectories/vwap.md) |
| --------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------ |
| [Passiveness](/creating-and-submitting-orders/advanced-settings/passiveness.md) | 0.02 |
| [Discretion](/creating-and-submitting-orders/advanced-settings/discretion.md) | 0.06 |
| [Alpha Tilt](/creating-and-submitting-orders/advanced-settings/alpha-tilt.md) | 0 |
| [Max OTC Percentage](/creating-and-submitting-orders/advanced-settings/max-otc-percentage.md) | 0% |
| [Passive Only](/creating-and-submitting-orders/advanced-settings/passive-only.md) | Disabled |
| [Active Limit](/creating-and-submitting-orders/advanced-settings/active-limit.md) | Disabled |
| [Reduce Only](/creating-and-submitting-orders/advanced-settings/reduce-only.md) | Disabled |
| [Strict Duration](/creating-and-submitting-orders/advanced-settings/strict-duration.md) | Disabled |
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