VWAP Calculator

Typical Price ($):
Interval Volume:
Cumulative Volume:


VWAP:

VWAP Calculator

The VWAP (Volume-Weighted Average Price) Calculator is a tool used in financial markets to calculate the average price at which a security has been traded throughout the trading day, weighted by the volume of each trade.

It helps traders and investors assess the average price at which a security was bought or sold, taking into account the volume of trading activity.

Formula

The formula for VWAP is calculated by dividing the cumulative total of price multiplied by volume for each trade by the cumulative total volume.

VWAP = (Σ(Price × Volume)) / ΣVolume

Example

Let’s consider a trading day where a security has traded at various prices and volumes. Here is a simplified example:

Trade 1: Price = $10, Volume = 1,000 Trade 2: Price = $12, Volume = 500 Trade 3: Price = $11, Volume = 800

Using the VWAP formula:

VWAP = (($10 × 1,000) + ($12 × 500) + ($11 × 800)) / (1,000 + 500 + 800) VWAP = ($10,000 + $6,000 + $8,800) / 2,300 VWAP ≈ $8.69

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