The volume-weighted average price (VWAP) is a measurement that shows the average price of a security, adjusted for its volume. It is used to calculate the average price of a stock over a period. VWAP is calculated as (Typical price x Volume) / cumulative volume.
Investors use VWAP to compare the current price of the stock to a benchmark, which makes it easier to decide when to enter and exit the market. Also, VWAP can assist investors in determining their approach towards a stock (active or passive) and making the right trade at the right time.
due diligence
Due diligence is an investigation of a potential investment (such as stock) or product to confirm all facts and to...
Read moreDetails
