VWAP stands for various terms. Discover the full forms, meanings, and possible interpretations of VWAP across different fields and industries.
The Volume-Weighted Average Price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security.
VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by the number of shares traded) and then dividing by the total shares traded for the day. This metric is typically used in Business Word contexts to assess the quality of execution for large orders, ensuring that the price paid is not substantially different from the market average.
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