easy · Order Flow Analysis market-mechanics-execution

An institutional seller using a 'VWAP' algorithm intends to fulfill which primary execution objective?

  1. To liquidate the entire position within the first 30 minutes of the RTH session, regardless of resulting price impact.
  2. To deliberately push price toward the second standard deviation band in order to trigger nearby retail stop-losses.
  3. To leave visible 'Unfinished Business' at the session highs, engineered specifically to trap other institutional sellers.
  4. To achieve an average fill price that matches the session's Volume-Weighted Average Price, proving 'fair' execution.

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