VWAP definition: Copy, customize, and use instantly
Introduction
The term "VWAP" (Volume Weighted Average Price) refers to a trading benchmark used to calculate the average price a security has traded at throughout the day, based on both volume and price. It is commonly used in trading and investing to assess the efficiency of buying or selling activities and is a key reference for institutional investors to ensure that they are executing orders close to the average market price.
Below are various examples of how "VWAP" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "VWAP" as a trading benchmark
This definition ties "VWAP" to its use as a benchmark for evaluating trade execution.
"VWAP" means the Volume Weighted Average Price of a security for a specified time period during the trading day, calculated by dividing the total value of trades by the total volume of trades executed.
Definition of "VWAP" as a reference for trade execution
This definition connects "VWAP" to its use as a reference point for executing large trades.
"VWAP" refers to the average price of a security, weighted by its trading volume, over the course of the trading day, often used by institutional investors as a target price for large orders to minimize market impact.
Definition of "VWAP" as a performance metric
This definition links "VWAP" to its use as a metric to assess the performance of trading strategies.
"VWAP" means the ratio of the cumulative volume of trades to the cumulative price of trades, which provides insight into the effectiveness of trade execution and market liquidity throughout the day.
Definition of "VWAP" as a risk management tool
This definition applies "VWAP" to its use as a tool for risk management in trading activities.
"VWAP" refers to the calculation that combines price and volume over a trading day, serving as a key risk management metric to help traders execute trades with lower volatility and better pricing efficiency.
Definition of "VWAP" as a technical indicator
This definition ties "VWAP" to its function as a technical analysis indicator.
"VWAP" means a technical indicator that tracks the average price of a stock or asset, adjusted for volume, used by traders to assess trends and potential buy or sell signals based on historical data.
Definition of "VWAP" as a daily average reference
This definition connects "VWAP" to its use as the daily average of a security's price, adjusted for volume.
"VWAP" refers to the volume-weighted average price of a security over the trading day, providing a reference point for evaluating the price at any given moment during the session.
Definition of "VWAP" as a trading strategy benchmark
This definition applies "VWAP" as a benchmark used in trading strategies for optimal execution.
"VWAP" means the average price, weighted by volume, which serves as a benchmark for evaluating the success of a trading strategy, particularly when executing large volume orders.
Definition of "VWAP" as a market efficiency measure
This definition links "VWAP" to its role in assessing market efficiency and trade execution.
"VWAP" refers to the calculated average price based on both price and volume of trades throughout the day, used to assess the efficiency of market orders and the execution cost of trades.
Definition of "VWAP" as a tool for price validation
This definition connects "VWAP" to its use as a reference for validating trade prices.
"VWAP" means the volume-weighted average price, used as a benchmark to validate the price at which trades are executed during a given trading day, ensuring pricing accuracy.
Definition of "VWAP" as a daily benchmark for traders
This definition applies "VWAP" to its use as a daily benchmark for assessing trade efficiency.
"VWAP" refers to the price a security has traded at, weighted by volume, calculated daily to act as a benchmark for traders to measure the effectiveness of their execution strategies.
Definition of "VWAP" as a dynamic trading reference
This definition ties "VWAP" to its dynamic nature as a continuously updated reference.
"VWAP" means a continuously updated price, weighted by the trading volume, that reflects the average price of a security, serving as a dynamic benchmark throughout the trading day.
Definition of "VWAP" as an order execution guide
This definition connects "VWAP" to its use as a guide for managing large orders.
"VWAP" refers to the average price of a security for the day, weighted by volume, which can serve as a guide for large order execution to minimize market impact and improve pricing efficiency.
Definition of "VWAP" as a market price trend indicator
This definition links "VWAP" to its role in tracking price trends.
"VWAP" means the volume-weighted average price, which traders use to track market price trends, helping to identify support or resistance levels for securities.
Definition of "VWAP" as a benchmark for execution timing
This definition applies "VWAP" to its function as a benchmark for determining the optimal timing of trades.
"VWAP" refers to the volume-weighted average price used as a benchmark for determining the optimal timing for entering or exiting trades during a trading day.
Definition of "VWAP" as a tool for minimizing market impact
This definition ties "VWAP" to its use for minimizing market impact when executing large trades.
"VWAP" means a trading strategy that seeks to execute large orders at the volume-weighted average price, aiming to reduce the price impact on the market and achieve better execution pricing.
Definition of "VWAP" as a trading efficiency measure
This definition connects "VWAP" to its role in assessing trading efficiency.
"VWAP" refers to a measure of trading efficiency, calculated by dividing the total value of trades by the total volume, offering insight into how well trades have been executed during the day.
Definition of "VWAP" as a benchmark for institutional investors
This definition applies "VWAP" to its use by institutional investors to monitor trade executions.
"VWAP" means the average price, weighted by trading volume, that institutional investors use to assess the execution quality of their trades relative to the market.
Definition of "VWAP" as a volume-adjusted price indicator
This definition ties "VWAP" to its function as a volume-adjusted price indicator.
"VWAP" refers to a trading indicator that adjusts price based on trade volume, offering a more accurate reflection of the security's market value throughout the day.
Definition of "VWAP" as a market efficiency tool
This definition connects "VWAP" to its role in assessing market efficiency.
"VWAP" refers to the volume-weighted average price, used to evaluate the efficiency of market execution and identify optimal trade entry and exit points.
Definition of "VWAP" as a trading execution benchmark
This definition ties "VWAP" to its function as a benchmark for trade execution.
"VWAP" means the average price of a security throughout the trading day, weighted by its trading volume, used as a benchmark to assess the execution of trades.
Definition of "VWAP" as a trade price guide
This definition applies "VWAP" to its use as a guide for trade pricing.
"VWAP" refers to the price at which a security has traded, weighted by the volume of trades, providing a guide for setting appropriate trade prices.
Definition of "VWAP" as a reference for trade strategy
This definition connects "VWAP" to its role in executing trading strategies.
"VWAP" means a reference point used by traders to align their trade strategies with the average market price, reducing price slippage and market impact.
Definition of "VWAP" as a price performance indicator
This definition ties "VWAP" to its function as a performance indicator for trades.
"VWAP" refers to the average price, adjusted for trade volume, used by traders to assess the performance of their trading decisions and execution timing.
Definition of "VWAP" as an institutional trading benchmark
This definition applies "VWAP" to its use by institutional investors for trade execution.
"VWAP" means the volume-weighted average price used by institutional investors to assess and guide large-scale trade execution, ensuring that orders are filled near the market's average price.
Definition of "VWAP" as a measure of trade execution quality
This definition connects "VWAP" to its role in measuring the quality of executed trades.
"VWAP" refers to a trading measure that compares the price at which a security is executed relative to the daily average price, providing insight into the quality of trade execution.
Definition of "VWAP" as a technical trading indicator
This definition ties "VWAP" to its role as a technical analysis tool.
"VWAP" means a technical indicator that tracks the price of a security adjusted for trading volume, helping traders identify trends, price levels, and potential trade signals.
Definition of "VWAP" as a benchmark for price validation
This definition links "VWAP" to its function in validating trade prices.
"VWAP" refers to the average price of a security during a trading day, weighted by its volume, used to validate the pricing of trades and determine market efficiency.
Definition of "VWAP" as a reference for price comparison
This definition applies "VWAP" to its use as a comparative reference for prices.
"VWAP" means the price, adjusted by volume, used to compare actual trade prices with the average market price for a given period during the trading day.
Definition of "VWAP" as a metric for analyzing market trends
This definition connects "VWAP" to its use in analyzing market trends.
"VWAP" refers to the volume-weighted average price used to analyze market trends and determine the potential direction of prices over the course of the trading day.
Definition of "VWAP" as a liquidity indicator
This definition ties "VWAP" to its role as an indicator of liquidity.
"VWAP" means a liquidity indicator calculated by taking the volume-weighted average price of a security, reflecting its tradability and market activity during the day.
Definition of "VWAP" as a strategy for minimizing market impact
This definition links "VWAP" to its use in minimizing market impact during trading.
"VWAP" refers to a strategy employed by traders to execute large trades while minimizing their impact on the market by aligning trade execution with the average price over time.
Definition of "VWAP" as a volume-adjusted price indicator
This definition applies "VWAP" to its function as a volume-adjusted price tool.
"VWAP" means the price of a security, weighted by the volume of trades, which provides a more accurate representation of its value throughout the day.
Definition of "VWAP" as a performance benchmark for institutional trades
This definition ties "VWAP" to its use as a benchmark for institutional investors.
"VWAP" refers to the volume-weighted average price that institutional investors use to assess the success of trade execution and to guide their buying and selling decisions.
Definition of "VWAP" as a reference for optimal trade timing
This definition connects "VWAP" to its function in determining optimal trade timing.
"VWAP" means the average price, weighted by volume, used to determine the best timing for entering or exiting a trade to ensure optimal pricing and market impact.
Definition of "VWAP" as a tool for assessing market value
This definition links "VWAP" to its role in assessing the value of a security.
"VWAP" refers to the price of a security during the day, weighted by its trading volume, used by traders and investors to assess its fair market value.
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