Stocks listed on the stock market are never static. It keeps going up and down based on supply and demand between buyers and sellers. The seller sets the price at which he is willing to sell his shares. At the same time, the buyer submits a bid price for the stock at the price at which he wishes to purchase the stock. Exchanges coordinate prices between buyers and sellers of shares and trade at compatible prices. The price at which the stock is sold is the LTP in share market or the Last Traded Price.
The closing price, also known as the last traded price or LTP in share market, is a number that indicates how much security was trading at the end of a specified period. This applies to stocks, options, and other tradable securities. Closing prices are calculated in real-time. It does not reflect the average of all trades within a given day or week. It is the last trade of security.
What is meant by LTP in share market?
LTP in share market meaning: The Last Traded Price is the last price at which the stock was bought or sold. Since this is a historical figure, it helps us understand how the stock has moved in the past.
LTP in Share Market is a reliable indicator for evaluating inventory valves and also helps determine future stock price volatility. It helps in estimating a stock’s possible range based on its past trading history. It helps in understanding stock price trends. In the stock market, it takes only 6 microseconds per trade execution. Since multiple trades occur every microsecond, the last traded price of a stock can change multiple times per second.
LTP is constantly changing according to the supply and demand of stocks. This means that his LTP changes with every successful trade.
Now that we understand the importance of his LTP in the stock market, let’s understand how LTP is determined.
LTP full form in Share Market
LTP full form is Last Traded Price
Example to Understand How The LTP is Calculated? | LTP calculator
Let’s understand the concept of LTP with an example.
Suppose a seller wants to sell his shares in XYZ Limited for $ 20 per share. In other words, the asking price is $ 20. There are buyers willing to pay a maximum of $ 18 for the same share. In other words, the asking price is $ 18 The trade fails because the ask and bid prices do not match.
Now suppose another seller entered the market willing to sell his shares at $18 yen per share. So the second ask price is $ 18. Since the asking price is now equal to the bid price, the trade is done for $ 18. The price at which this trade takes place, i.e. $18, is called the Last Traded Price.
What is LTP Strategy for the Market?
LTP is the value of a stock as a percentage of its total price. It’s on his website on the exchange, just above the name and ticker symbol in the list of all running scripts. LTP is the closing price of a stock on a given day. LTP is also known as Today`s Price and Quote, Today`s Price and Value.
How does LTP work in share market?
LTP in share market refers to a lump sum trade that takes place on an exchange. Here, the buyer and seller enter into a contract under which the seller must sell a specified number of shares at a specified price at a specified time. The number of shares determines the transaction amount. LTP is an option for those who want to make quick profits in the stock market without having to trade continuously.
The closing price of the trading day. It usually ends in .00 or .01, .02, etc. It does not include bonus costs or dividends announced on that date. Instead, it shows the last traded price for the day. This is similar to the stock’s closing price or daily closing price, which we know after the market closes.
Trading Volume Impacts LTP in Share Market
Trading volume plays an important role in determining the LTP in share market. It is basically the amount of a particular stock that is trading at a particular time.
The more often a stock trades on the market, the greater it’s trading volume. This increases the stock’s volatility. High volume and volatility mean more buyers and sellers are taking advantage of this stock. Therefore, the higher the volatility, the faster the stock’s LTP will move. Therefore, LTP is heavily manipulated by trading volume.
LTP in share market is one of the important indicators for a share market trader or investor. This can serve as valuable information indicating the last price a buyer paid for a particular stock. You can use this price information to set your ask or bid price.
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