NDD Glossary
MetricIntermediate

Volume-Weighted Average Price (VWAP)

syn. VWAP

A benchmark that calculates the average price of an asset weighted by traded volume over a specific period.

Last updated: February 1, 2026
1

All executed trades for an asset within a time period are recorded with their price and volume.

2

The sum of (price * volume) for each trade is calculated.

3

This sum is divided by the total volume traded.

4

The result is a single price that reflects the average execution price weighted by volume.

5

VWAP is used as a benchmark to evaluate whether individual executions were favorable.