## 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