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VWAP — definition & meaning

The volume-weighted average price traded over a session.

VWAP (Volume-Weighted Average Price) is the average price at which an instrument has traded during a session, weighted by volume. It shows the 'fair' average paid so far.

Institutions use VWAP as a benchmark for execution quality, and day traders use it as a reference: trading above VWAP is seen as relatively bullish, below it as bearish.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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