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  1. Home
  2. /Glossary
  3. /Weighted Average Price
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trading

Weighted Average Price

The average price of an asset weighted by the volume traded at each price level.

Definition

The average price of an asset weighted by the volume traded at each price level. Volume-weighted average price (VWAP) is the most common variant. If you're buying large amounts, your actual average price will be higher than the current price due to slippage and fills at multiple price levels.

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Related Terms

VWAP (Volume-Weighted Average Price)

An indicator that shows the average price an asset has traded at, weighted by volume.

TWAP (Time-Weighted Average Price)

An order execution strategy that breaks a large trade into smaller chunks spread over a set time period to minimize price impact.

Slippage

The difference between expected and actual trade execution price.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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