VWAP
a.k.a. Volume-Weighted Average Price, VWAP algo
The average price an asset traded at during a period, weighted by how much traded at each price; also an execution algorithm that targets it.
VWAP (volume-weighted average price) is the average price of the day, with more weight given to prices where more trading happened. Many day traders plot it as a line on intraday charts: price above VWAP suggests buyers are in control for the session, below suggests sellers.
It is also a benchmark for big institutions. A VWAP algorithm slices a large order into pieces sized to match the market's typical volume pattern through the day, aiming to fill close to VWAP and keep market impact low. Its simpler cousin is TWAP.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.