Web Trader MT5
A simple average gives every trade the same importance. VWAP does not. It stands for volume-weighted average price and gives more weight to prices where more trading took place.
If 100 shares trade at $10 and another 900 shares trade at $11, the VWAP is $10.90. The larger trade at $11 has a much stronger effect on the result.
Traders often compare their own execution price with VWAP. A buyer who pays below VWAP received a lower price than the market’s volume-weighted average for that period.
VWAP usually resets at the start of each trading session, so it is mainly used during the day.
