Skip to main content
Learn

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

VWAP is the average price weighted by volume over time, used to ensure the settlement price reflects true market value.
Greeks.Live21.11.25

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

VWAP is a trading benchmark that represents the average price of a security over a specified time period, weighted by the total trading volume at each price point. In futures settlement, VWAP is used to calculate a fairer final price.

By weighting the price by volume, it ensures that prices traded during high-volume periods have a greater impact, making the settlement price more representative of the true market value during the calculation window.

What Is the Difference between a TWAP and a Volume-Weighted Average Price (VWAP)?
How Can Traders Use Volume-Weighted Average Price (VWAP) to Gauge Execution Quality and Slippage?
What Is the Difference between a Spot Price Oracle and a Volume-Weighted Average Price (VWAP) Oracle?
What Is the Significance of the Volume-Weighted Average Price (VWAP) in Measuring Execution Quality?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.