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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  • volume weighted average price — VWAP (Volume weighted average price) Volume weighted average price ( VWAP), which is calculated by dividing the value of trades by the volume over a given period. A closing 10 minute VWAP is used to set closing prices on the order book. London… …   Financial and business terms

  • Volume-weighted Average Price —    ► See VWAP …   Financial and business terms

  • Time Weighted Average Price — TWAP is a trading acronym for Time Weighted Average Price. TWAP is the average price of contracts or shares over a specified time. TWAP is also sometimes used to describe a TWAP trading strategy, that is a strategy that will attempt to execute an …   Wikipedia

  • 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

  • VWAP Cross — A trading indicator that occurs when the current price crosses over the volume weighted average price (VWAP). Since the VWAP provides a measure of the average price within a time period, traders often look to buy a security at a VWAP cross price… …   Investment dictionary

  • VWAP — is a trading acronym for Volume Weighted Average Price, the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price a stock traded at over the trading horizon.VWAP is …   Wikipedia

  • VWAP — Volume Weighted Average Price (Business » General) …   Abbreviations dictionary

  • VWAP — abbr. Volume Weighted Average Price …   Dictionary of abbreviations

  • closing price — The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm s net gains or losses, margin requirements, and the next day s price limits, based on each futures and options contract settlement price. If… …   Financial and business terms

  • Algorithmic trading — In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black box trading, or robo trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on certain …   Wikipedia

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