Volume weighted average price (VWAP)

By | 2017-09-14T09:58:22+00:00 14th September 2017|

The volume weighted average price (VWAP) is a trading measure used in markets. VWAP is calculated by adding up the Czech Koruna 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) = (number of shares bought * share price) / total shares bought

Generally, if the price of a buy trade is lower than the VWAP, it is a good trade. If the price is higher than the VWAP the opposite is true.