Volume-weighted average price (VWAP) is the ratio of the total value traded in a security to the total volume of transactions over a defined period, typically a single trading session. It functions both as an execution benchmark, used to judge whether an order was filled at a favorable price, and as a technical indicator, since it accounts for the size of each transaction rather than treating every trade equally. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
Sources
Wikipedia: Volume-weighted average price
Reader Challenges (0)
No disputes yet. Spotted an error or a better source? Open the first one.
Sign in to dispute this or suggest a correction.