Volume Weighted Average Price

Understanding the VWAP Calculator

A VWAP (Volume Weighted Average Price) calculator is an essential tool for traders and investors looking to get a fair value of a stock based on the day’s volume and price data. It is a trading benchmark that is often used by investors who aim to be as passive as possible in their execution.

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Free VWAP Calculator

Our free VWAP calculator is a simple and efficient tool designed to give you the VWAP in real-time as you input the necessary data. It’s accessible, user-friendly, and a staple for your trading toolkit.

The Importance of VWAP

VWAP serves as a reference point for prices throughout the day. It is a measure that helps traders to: Make informed decisions on the timing of their trades, understand the market trend and identify potential support and resistance levels.

How to Calculate VWAP

The VWAP calculation involves taking the average of the products of the number of shares traded (volume) and the share price (value) over a standard interval, divided by the total shares traded during that period.
The formula for calculating VWAP is:

VWAP = ∑(Price×Volume)/∑Volume

Steps to Calculate VWAP Using Our Calculator

  1. Input Data: Enter the high, low, and closing prices of the stock.
  2. Interval Volume: Provide the volume of shares traded in the interval.
  3. Cumulative Volume: Enter the cumulative volume of shares traded up to that point.
  4. Calculate: Click the ‘Calculate’ button to receive the average price and VWAP.

FAQ

What is a VWAP Calculator?

A VWAP calculator is a tool that calculates the Volume Weighted Average Price, a trading benchmark used throughout the trading day.

How is VWAP Calculated?

VWAP is calculated by taking the product of the stock’s price and the volume traded at each interval and dividing the total by the cumulative volume of the stock.

How to Calculate VWAP?

To calculate VWAP, you need the high, low, close prices, interval volume, and cumulative volume for the stock. The calculator then computes the VWAP based on these inputs.

Can VWAP be Used for All Trading Instruments?

Yes, VWAP can be applied to any trading instrument where volume data is available.

How Often is VWAP Updated?

When calculated manually, VWAP is updated with each new price and volume data. With our calculator, the update is real-time as new data is entered.