VWAP Benchmark Trading

Futures Intermediate NIFTY Futures BANKNIFTY Futures FINNIFTY Futures Stock Futures

Trades price deviations from volume-weighted fair value

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Quick Reference

Strategy Type VWAP Trading / Institutional Benchmark Strategy
Market Outlook Trades price deviations from volume-weighted fair value
Risk Profile Low to Moderate - VWAP provides objective reference point
Reward Profile Consistent returns from mean reversion to VWAP and trend trades with VWAP
Time Horizon Intraday (VWAP resets daily)
Capital Requirement Moderate (₹1,50,000 - ₹4,00,000)
Margin Type MIS for intraday VWAP trades
Best Used When Liquid markets with clear VWAP trends or deviations, institutional participation visible

When to Use This Strategy

Liquid markets with clear VWAP trends or deviations, institutional participation visible

India-Specific Notes

Lot Sizes

NIFTY 25 units per lot (₹50 per point)
BANKNIFTY 15 units per lot (₹15 per point)
FINNIFTY 25 units per lot (₹25 per point)
Stock Futures Varies by stock

Optimal Times

Morning 10:00 AM - 12:00 PM (VWAP established, good deviations)
Afternoon 2:00 PM - 3:15 PM (end-of-day VWAP reversion common)

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