VWAP
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Volume-weighted average price |
|---|---|
| Categories | Business & Finance |
VWAP stands for Volume-weighted average price, a stock market & investing abbreviation.
Average price at which a security has traded during a period, usually a single day, weighted by the volume at each price. Institutional traders use VWAP as a benchmark for execution quality, and day traders treat it as a key intraday level.
Example: The fund instructed its broker to buy 500,000 shares over the day at or below VWAP.
Usage notes
Pronounced "VEE-wap." Algorithms that slice large orders to track VWAP are among the most common institutional execution strategies, and buying below VWAP is considered good execution. A related benchmark, TWAP, weights by time rather than volume.
Related abbreviations
More stock market & investing abbreviations
- 10-K – Form 10-K (annual report)
- 10-Q – Form 10-Q (quarterly report)
- 13D – Schedule 13D
- 13F – Form 13F
- 20-F – Form 20-F
- 8-K – Form 8-K (current report)
- ADR – American depositary receipt
- ADV – Average daily volume
- AMEX – American Stock Exchange
- AON – All or none
- ASX – Australian Securities Exchange
- ATH – All-time high