# VWAP

*Trading & Technical Analysis — Finicade finance glossary*

VWAP is the average price weighted by volume over a period, and it's both an execution algorithm and the benchmark institutional traders are graded against. Beating VWAP means you executed better than the day's average participant. Because it's such a common benchmark, large VWAP orders create predictable intraday flow that faster participants trade around.

**Formula:** `VWAP = Σ(Price × Volume) ÷ Σ(Volume)`

**Also known as:** volume weighted average price, VWAP benchmark

**Related terms:** [TWAP](https://finicade.com/glossary/twap), [Algorithmic Trading](https://finicade.com/glossary/algorithmic-trading), [Transaction Cost Analysis](https://finicade.com/glossary/transaction-cost-analysis), [Slippage](https://finicade.com/glossary/slippage), [Trading Volume](https://finicade.com/glossary/trading-volume)

Source: https://finicade.com/glossary/vwap