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Volume Weighted Average Price-VWAP
Volume weighted average price is a trading benchmark used to find best possible price for a security. It is a measure of an average price at which trading occurred during the day.
Volume Weighted Average Price is calculated by the following formula:
VWAP = (∑Number of Shares Traded x Share Price) / Total Shares Traded
It is a weighted average of prices of each trade. If the share price is lower than the calculated VWAP it is considered a great price at which trading should occur.
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