What is LTP in Share Market : What Does LTP Mean and Why Is It Important?

What is LTP in Share Market

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What is LTP Full Form in Share Market?

The full form of LTP is the Last Traded Price. The last traded price is the current price at which a stock is trading in the market. It is helpful to know the last traded price when you are looking up a stock's performance, or when you need to calculate how much your investment has grown. 

The LTP can give you an indication of what people are willing to pay for security at any given moment in time. 


What is Last Traded Price(LTP) in the Share Market?

The last traded price is the current price at which a stock is trading in the market. It is helpful to know the last traded price when you are looking up a stock's performance, or when you need to calculate how much your investment has grown. 

What is Last Traded Price(LTP) in the Share Market?

The last traded price (LTP) is available as secondary market information that is usually publicly released by the exchange. While it can not be used to directly calculate the stock price, it is the most common way to determine a price. 

The LTP can give you an indication of what people are willing to pay for security in any given moment in time.


What is the Meaning of Last Traded Price(LTP)?

The LTP is calculated by subtracting the open price and the close price of a security from its current trading price. This calculation works out the price people will be willing to buy a security at.

It is important to remember that you can't just look at the last traded price and base your strategy on it. The real purpose of the LTP is to determine the public's perception of the security, and you want to be sure that you invest in the right security at the right price.

Basic concept

If you buy a stock today, and you sell it tomorrow, the difference between your LTP and the current price would be how much you bought at and how much you sold at. That is what the stock market is all about, buying low and selling high.


Why is the last traded price(LTP) Important?

It is important to know the last traded price because of three reasons:

  • It helps you to calculate how much your investment has grown. It will help you to understand the fundamentals of the company's business. It will give you an indication of how a stock will perform in the future.

  • Identifying the best times to buy stocks is a challenge for everyone. Do you go when there are good earnings or when the stock price is low? Will you buy in the rising market or in the falling market?

  • The last traded price makes it easy for you to find out when the stock price is low so you can invest at the right time. When the price is low, the sentiment is low. This is because people usually consider that a company is about to face a crisis.


How to find the last traded price (LTP) of a stock?

There are  ways to find the last traded price of a stock:

You want to know the last traded price of a stock. To find it, you can either use the data from the current page (as a good stock screen), or you can go to one of the many major financial data sources that list the last traded price of a stock. 

For example, you can use google all other market-related sites and your broker can also provide the last traded price of a stock, among many other kinds of financial data. The chart below shows the last traded price for a stock 


How Last Traded Price is Important for Traders?

One of the most important pieces of information for traders is the stock’s last traded price. The last traded price is known in finance as the asking price or the current offer, and it represents how much you would have to pay for a stock if you wanted to buy it right now. 

The next time you see a headline that says “stocks up 10%,” this number is exactly how much money you would make by trading stocks at that moment.

  The last traded price (LTP) is available as secondary market information that is usually publicly released by the exchange. While it can not be used to directly calculate the stock price, it is the most common way to determine a price. 

This is because when you buy a stock, you are buying it at the LTP or at the last known price. You can calculate the LTP by looking at a chart that shows the LTP of a particular stock. The LTP will depend on the volume of the stock. The less the volume, the more volatile the price is, and the less it will move.

LTP calculation is made by looking at the history of the price of a particular stock.


Also Read - Top 10 Best Smart Watch Under 2000 in India


Conclusion

With the help of the LTP, you can figure out the fluctuation in a stock price, which will provide a better understanding of the stock market and the expectations of investors. Take the form to see how the fluctuation of a stock has changed over the last 12 months.

The stock market is definitely one of the most popular investment avenues for most people in the world.


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