It stands for volume-weighted average price algo; an algo (algorithm) that allows users of electronic trading to participate in proportion with the intraday volume progression. A VWAP algorithm allows a trader to target a specific VWAP over a given intraday window. This algorithm is mainly based on historical data (historical volume and price information) in addition to a trader’s parameters. Executions can be largely affected by deviations from historical means due to market developments (news releases). Therefore, users are usually recommended to consider expected deviation of volume from the mean before they embark on VWAP trades. The order is typically sliced into multiple smaller orders and executed according to the preset parameters.