VWAP (Volume Weighted Average Price)

VWAP is the average price a stock traded at throughout the day, weighted by how many shares changed hands at each price level. Instead of treating every trade equally, VWAP gives more importance to prices where lots of volume occurred. You'll see traders use it to spot whether they got a good deal on a purchase—if you bought below VWAP, you beat the day's average; above it, you overpaid relative to the crowd. It's especially useful for large trades, since institutions care about not moving the market too much. For example, if TechCorp stock traded 100,000 shares at $50 and 200,000 shares at $51, the VWAP would lean closer to $51 since more volume happened there.