| Volume
Weighted Average Price - VWAP |
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A trading benchmark particularly used in pension plans. Calculated
by adding up the dollars traded for every transaction (price times
shares traded) and then divide by the total shares traded for the
day.
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The
theory is that if the price of a buy trade is lower than the VWAP,
it is a good trade. The opposite is true if the price is higher than
the VWAP. |
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Dictionary
