Volume weighted average price is a method of calculating the closing market price of a security. Most markets do not use the last traded price as the closing price as it is open to manipulation. Instead the closing price is set by calculating the average traded price over a period of time. The method of calculation will depend on the exchange.

Definition Volume Weighted Average Price. A measure of the price at which the majority of a given day's trading in a given security took place. Calculated by taking the weighted average of the pr [..]