Medi Assist Healthcare IPO

Explore
Open Demat Account Login
Finance Wiki
Trending Categories
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
#

Technicals

VWAP

Let's discuss an important concept in finance known as Volume Weighted Average Price, or VWAP for short. This metric is calculated by taking the total volume of trades for the day and multiplying it by the corresponding price for each trade. This is then divided by the total volume for the day. Essentially, it is a measure of the average price at which a particular security is traded throughout the day.

VWAP is commonly used as a benchmark in pension plans to evaluate the performance of a particular trade. It is believed that if the price of a buy trade is lower than the VWAP, it is a favorable trade. Conversely, if the price is higher than the VWAP, it may not be as advantageous. This concept is based on the idea that the VWAP represents the fair market value of a security at any given time.

By incorporating the total volume of trades into the calculation, VWAP takes into account both the price and the quantity of

Explore other categories
All terminologies and concepts related to financial derivatives, including options and futures contr
Learn More
All terms & concepts related to financial contracts whose value is based on an underlying asset,
Learn More
All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o
Learn More
All terms and concepts related to the placement of money in a bank account, including savings accoun
Learn More
Terms related to decisions and events initiated by a company that can impact its stock, such as divi
Learn More
All terms and concepts related to stocks, also known as equities, which represent ownership shares i
Learn More
All terms and concepts related to insurance, which is a financial arrangement that provides protecti
Learn More
All terms related to various types of organizations or individuals, like investors, banks, insurers,
Learn More
All terms and concepts related to the process of saving and investing to ensure financial security a
Learn More
All terms and concepts related to the precious metal gold, including its price, trading, investment,
Learn More
Enjoy Zero Brokerage On Stock Investments
Send App Link