In What Other Financial Calculations besides Settlement Is VWAP Commonly Used? ▴ Learn

In What Other Financial Calculations besides Settlement Is VWAP Commonly Used?

VWAP is commonly used in algorithmic trading as a benchmark for order execution. Portfolio managers use it to measure the quality of their trade execution, aiming to buy below or sell above the VWAP.

It is also used in calculating performance benchmarks for mutual funds and ETFs, and sometimes as a reference price for large over-the-counter (OTC) block trades.

What Is a “Volume-Weighted Average Price” (VWAP) and How Is It Used in Settlement?

How Is ‘Volume-Weighted Average Price’ (VWAP) Used as a Benchmark for Trade Execution?

Besides Iceberg Orders, What Other Order Types (E.g. TWAP, VWAP) Are Used to Minimize Slippage in Derivatives Trading?

What Statistical Measure Is Commonly Used to Quantify Volatility for Margin Calculations?