VWAP Calculator
Key Takeaway
VWAP (Volume Weighted Average Price) shows the average price a stock has traded at throughout the day, weighted by volume. Institutional traders use VWAP to evaluate execution quality.
VWAP Calculator
Calculate Volume Weighted Average Price for intraday analysis.
VWAP
₹100.83
Total Volume
1,200
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Volume Weighted Average Price (VWAP) Formula
Calculates the average price a stock has traded at throughout the day, based on both volume and price.
Worked Example: 3 trades (100 shares at ₹150, 200 shares at ₹152, 500 shares at ₹149)
VWAP: Trading in alignment with institutional average prices
A corporate treasurer executed a large buy order of 800 shares. Instead of buying all at once, he spread trades across the day, trying to match the VWAP.
His execution average was ₹149.88, matching the daily VWAP of ₹149.88, indicating high execution quality.
VWAP calculates average traded prices throughout the day based on volume and price, smoothing out noise.
VWAP is heavily used by institutional investors to buy or sell large blocks of shares without moving the market price.
Frequently Asked Questions
What is VWAP?
Volume Weighted Average Price (VWAP) is a trading benchmark that gives the average price a security has traded at throughout the day, based on both volume and price.
Why is VWAP important for institutional traders?
Mutual funds and institutions use VWAP to ensure they are executing large orders close to the market average, minimizing their market impact and avoiding paying a premium.
How do retail traders use VWAP?
Retail day traders use VWAP as a trend confirmation tool. If the price is above VWAP, the trend is generally bullish; if it is below, the trend is bearish.
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