VWAP price at 0.02$/stock on IB : interesting?

Discussion in 'Trading' started by GeorgeSoros, Aug 16, 2001.

  1. def

    def Sponsor

    1st: vwaps do not have to start on the open (you can place a vwap order at say 11 AM).

    2nd: How would you know a VWAP order is taking place? How would you know it is a buy order a sell order or any combination thereof from multiple brokers.

    3rd: If a stock drops below the VWAP and you use this as a signal to buy - GOOD luck. If the stock continues to sink they get the average price on the day. You just get a loss.
     
    #11     Aug 17, 2001
  2. dozu888

    dozu888

    One sentence again.

    There is no free lunch on Wall Street.
     
    #12     Aug 17, 2001
  3. ktm

    ktm

    QCharts tracks real-time VWAP and those farthest above/below if you're interested. I agree with Def, I'm unable to see how VWAP is any sort of indicator for entry. I had always heard it was primarily used by mutual funds. I also read in a book a few years ago that some MM bonuses or incentive pay was tied to their performance against the VWAP.

     
    #13     Aug 17, 2001
  4. dozu888

    dozu888

    Basically VWAP is a more sophisticated version of simple moving average.
     
    #14     Aug 17, 2001