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{{ | {{ap|eqderiv|}}In finance, [[volume-weighted average price]] ([[VWAP]]) is the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price a stock traded at over the trading horizon. | ||
[[VWAP]] is often used as a trading benchmark by investors who aim to be as passive as possible in their execution. Many [[pension funds]], and some [[mutual funds]], fall into this category. The aim of using a [[VWAP]] trading target is to ensure that the trader executing the order does so in-line with volume on the market. | [[VWAP]] is often used as a trading benchmark by investors who aim to be as passive as possible in their execution. Many [[pension funds]], and some [[mutual funds]], fall into this category. The aim of using a [[VWAP]] trading target is to ensure that the trader executing the order does so in-line with volume on the market. | ||
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*{{eqderivprov|Averaging}} | |||
*[[Equity Derivatives Anatomy]] | *[[Equity Derivatives Anatomy]] | ||
*{{eqderivprov|Final Price}} | *{{eqderivprov|Final Price}} | ||
*[http://en.wikipedia.org/wiki/Volume-weighted_average_price Wikipedia on volume-weighted average price] | *[http://en.wikipedia.org/wiki/Volume-weighted_average_price Wikipedia on volume-weighted average price] | ||