analysis · intermediate

VWAP

Volume-Weighted Average Price is the average price of trades weighted by the size of each trade.

Institutional desks in India often benchmark execution quality against VWAP.

Buying below VWAP or selling above VWAP is a common informal performance yardstick.

VWAP algorithms slice parent orders through the day to track the benchmark.

Exchange tick data or vendor feeds are used to compute live and historical VWAP.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.