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What Is Volume-Weighted Average Price (VWAP)?

By Matthew DiLalloUpdated Aug 17, 2025 at 8:06 PM

Key Points

  • VWAP mixes stock's average price and trading volume for accurate trading day values.
  • VWAP helps companies set fair prices in high-volume trades and corporate deals.
  • Investors use VWAP to spot trade opportunities when stock prices deviate from it.

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