VWAP vs TWAP: Understanding the Key Differences in Trading Strategies

A seesaw comparing VWAP (bag of money, representing volume) and TWAP (clock and coins, representing time), highlighting their key differences.

This image visually compares VWAP (Volume Weighted Average Price) and TWAP (Time Weighted Average Price) using a seesaw, symbolizing how VWAP prioritizes trading volume (money bag) and TWAP focuses on time (clock).