What is the 'Volume Weighted Average Price - VWAP'
This definition is derived from the explanation for Volume Weighted Average As defined by Investopedia. The volume weighted average price (VWAP) is a trading benchmark used especially in pension plans. To calculate VWAP, you have to add up the dollars traded for every transaction (price multiplied by number of shares traded) and then divide this by the total shares traded for the day.