volume-weighted average price


Volume Weighted Average Price

The price of a security in which a higher trading volume affects the price more than a lower trading volume. It is calculated by dividing the dollar value of transactions by the average volume. It is sometimes used to determine the relative strength of a trend.

volume-weighted average price

The average price of a stock calculated by dividing the daily trading volume into the dollar value of daily transactions. Institutional investors sometimes use the volume-weighted average price to determine if a particular trade was at a favorable or unfavorable price.