LTP in the stock market means last traded price. The price of the stock is not defined or it is not permanent but they are in motion, rising and falling with the supply of the shares available for the sell and the demand for those shares. The last traded price is the price at which the last order was executed between the buyer and seller. At any moment, the price you observe for the company’s stock is just simply about the last traded price or LTP.

The price of the stock is not decided by the company or the stock exchange but it’s the buyers and the sellers who decide the price. Once the sell is completed, the price at which it was executed for that becomes the last traded price or LTP.

LAST TRADED PRICE
Image Source: nseindia.com

On the above picture, you will the last traded price as on 5-3-2020 in the equity section and this shot is taken from NSE India Website. The picture will show you the different symbols of the stocks and the Indexes and with their LTP.

Meaning of LTP

Stock traders must always detain mind that the LTP is actually a historical number: It reflects a trade that has occurred within the past, although solely a fraction of a second within the past. If you select to buy for the stock, you will be ready to pay the last listed value, otherwise, you might not.

It all depends on the costs being offered once your order goes through each the raise costs from sellers and also the bid prices from alternative patrons. Still, LTP is extraordinarily helpful as a result of it provides you with a general sense of what you’ll buy or sell a share for, and since trailing it tells you whether or not a stock is rising or falling.

Exploring the Trading Volume

A stock’s trading volume the number of shares being bought and sold plays a serious role in decisive however shut the present commerce value are going to be to the LTP. The bigger the degree, the less volatile the stock, which means it isn’t as vulnerable to sharp swings in value. Also, the bigger the degree, the smaller unfold between the bid and raise costs, therefore sellers are a lot of seemingly to induce a value terribly about to their original raise, and consumers are a lot of seemingly to pay a value terribly about to their original bid.

To understand the Closing Prices

The “closing value” of a stock is that the last listed value of the day on the exchange that handles that exact price. NSE and BSE exchanges usually shut (Post-Closing Session) at 3:40 PM to 4:00 PM. Nowadays, stock trading continues once hours, and since there are measure fewer traders active after hours, that means lower volume, it’s even less probable that you’re going to pay the LTP then. Consecutive morning, the “opening price” of the stock is the worth arranged within the terribly 1st trade of the day.

Conclusion

Last traded price is nothing but when the sell of the stock is done and at that price that the sell is made is LTP. The price is not defined by the company neither the stock exchange it is solely decided by the buyer and the seller and they decide a particular price for the transaction and when the sale is done then that the price is term as Last Traded Price (LTP).

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Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.