Volume Weighted Average Price - VWAP

Volume Weighted Average Price - VWAP
A trading benchmark used especially in pension plans. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by number of shares traded) and then dividing by the total shares traded for the day.

Volume Weighted Average Price (VWAP)

The theory is that if the price of a buy trade is lower than the VWAP, it is a good trade. The opposite is true if the price is higher than the VWAP.


Investment dictionary. . 2012.

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  • VWAP — The volume weighted average price. Bloomberg Financial Dictionary VWAP volume weighted average price represents the total value of shares traded in a particular stock on a given day, divided by the total volume of shares traded in that stock on… …   Financial and business terms

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