skycfa

meaning liquidity- so stock # 1 you have 2 trades all day- 100 shrs at $20. 100 shrs at $21. Your vwap is $20.5. stock # 2. trades 2 million shrs during the day, your vwap winds up being $20.5.

If you look at a stock for the day and we say on both your vwap is $20.5, see how it doesn't really account for trade volume? 1st one, you aren't going to get much off at the VWAP if your order is of any size.