Weighted Average Price

[jrob09]

I am just doing some work on weighted average. Now while I am aware of wom etc I wondered what formula was being used to calculate the Weighted Average Price of a selection. There is a website that shows the figures for each selection however I can not find the formula. " betmover"[/url]http://stakesoft.com/betmover/[url][/url]

[negapo]

So the Weighted Average Price would be exactly an average price corrected by the Volume, so it's only applicable to an exchange where we know the volumes that were traded for each selection.

The formula is Sum(Price * Volume)/Sum(Volume).

An example:
Odd - Volume
1.52 - 500€
1.45 - 200€
1.56 - 250€

WAP = ((1.52*500) + (1.45*200) + (1.56*250)) / (500+200+250) = 1.516

So if a price has a higher volume it will have a greater importance on the WAP.