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Posted On: 01/08/2021 7:26:47 PM
Post# of 148902
This makes perfect sense as a "volume weighted average price" ("VWAP"
trade, involving a buyer who considers themselves a good stock picker on one side and a good trader on the other
The buyer signs an agreement with the trader at market open to acquire some number of shares at the day's VWAP. The trader accumulates shares during the day, trying to beat that average price and so make a profit.
The transfer of those shares to the ultimate buyer, priced at the VWAP, obviously has to show up after the end of trading day, or you don't know VWAP. All the day's VWAP trades likely report together.
VWAP buyers are not retail (or are really, really big retail) so this number does tell you something.
trade, involving a buyer who considers themselves a good stock picker on one side and a good trader on the other The buyer signs an agreement with the trader at market open to acquire some number of shares at the day's VWAP. The trader accumulates shares during the day, trying to beat that average price and so make a profit.
The transfer of those shares to the ultimate buyer, priced at the VWAP, obviously has to show up after the end of trading day, or you don't know VWAP. All the day's VWAP trades likely report together.
VWAP buyers are not retail (or are really, really big retail) so this number does tell you something.
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