VWAP (Volume-Weighted Average Price)
Computes the VWAP, the volume-weighted average price of a sequence of trades: the sum of price times volume divided by the sum of volumes. Unlike a simple average, the VWAP gives more weight to prices where more trading happened, reflecting the real average price paid over the period. Traders use it as an execution benchmark — buying below the VWAP is considered a good entry. Enter the lists of prices and corresponding volumes, separated by commas.
Resultado
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VWAP (Volume-Weighted Average Price)
Computes the VWAP, the volume-weighted average price of a sequence of trades: the sum of price times volume divided by the sum of volumes. Unlike a simple average, the VWAP gives more weight to prices where more trading happened, reflecting the real average price paid over the period. Traders use it as an execution benchmark — buying below the VWAP is considered a good entry. Enter the lists of prices and corresponding volumes, separated by commas.
The average price that actually matters
Taking a simple average of a day's prices ignores a crucial detail: not every price had the same size of trade behind it. A spike hit with a hundred shares is worth far less, as a reference, than a level where millions changed hands. The VWAP fixes this by weighting each price by the volume traded, delivering the average price the money actually paid.
That's why it became the market's execution ruler. Institutional desks are judged on buying below the VWAP and selling above it, and entire algorithms exist just to chase that mark through the session. For the ordinary investor, comparing your entry price with the day's VWAP tells you whether you paid dearly or cheaply relative to the crowd.
Enter the list of prices and the list of corresponding volumes, in the same order, separated by commas. The tool sums price times volume, divides by the total volume and returns the VWAP. Remember it's an average of the period entered; a true intraday VWAP recomputes with every new trade through the day.
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The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.