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.

Look at other dictionaries:

  • average price — The transaction was effected at a price based on a volume weighted average price over a given period. London Stock Exchange Glossary …   Financial and business terms

  • Average — An arithmetic mean of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA s stocks, and divides …   Financial and business terms

  • average — An arithmetic mean return of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA stocks, and… …   Financial and business terms

  • Price index — A price index (plural: “price indices” or “price indexes”) is a normalized average (typically a weighted average) of prices for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to… …   Wikipedia

  • Price of petroleum — This article is about the price of crude oil. For information about derivative motor fuels, see gasoline and diesel usage and pricing. For detailed history of price movements since 2003, see 2003 to 2011 world oil market chronology. Brent barrel… …   Wikipedia

  • Price Volume Index —    A technical analysis indicator that is essentially a volume weighted RSI (relative strength index). It attempts to measure the amount of money entering and leaving the market.    ► See also Moving Average, RSI, Technical Analysis …   Financial and business terms

  • Unit price —   Total revenue derived from the sale of product during the reference month divided by the total volume sold; also known as the weighted average price. Total revenue should exclude all taxes but include transportation costs that were paid as part …   Energy terms

  • Moving average — For other uses, see Moving average (disambiguation). In statistics, a moving average, also called rolling average, rolling mean or running average, is a type of finite impulse response filter used to analyze a set of data points by creating a… …   Wikipedia

  • Consumer price index — CPI redirects here. For other uses, see CPI (disambiguation). A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor …   Wikipedia

  • House price index — A House Price Index (HPI) measures the price of residential housing.USOFHEOThe US Office of Federal Housing Enterprise Oversight (OFHEO) publishes the OFHEO HPI, a quarterly broad measure of the movement of single family house prices. The HPI is… …   Wikipedia

  • Corporate Average Fuel Economy — CAFE redirects here. For other uses, see Cafe (disambiguation). The Corporate Average Fuel Economy (CAFE) are regulations in the United States, first enacted by the U.S. Congress in 1975,[1] and intended to improve the average fuel economy of… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.