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Last Traded Price (LTP) - Definition & Advantages of Last Traded Price | What is Last Traded Price?

Last Traded Price (LTP) in Stock Market

Last Traded Price, or LTP, refers to the most recent price a transaction was made for an asset. This metric varies for each stock and is important for traders and investors as it shows the asset's current market value and its price movement direction. 

Understanding LTP in Share Market

  1. LTP is the price at which a transaction is made on the stock exchange. It is determined by multiplying the number of shares by the LTP.

  2. LTP is a good option for those seeking quick profit in the stock market without consistent trading.

  3. LTP typically ends with .00, .05, .10, etc., showing the final trading price for the day.

  4. LTP does not include bonus issues or dividends issued on the day, only the latest trading price. It is similar to the closing price of a specific stock.

Value of LTP in Stock Market

Stocks are essentially purchase options for companies. Their value can be unclear, especially for smaller or riskier companies, but in the long run, they usually increase in value. The market price of a stock is not the same as the last traded price, which is the price of the most recent transaction. The market price is where the next transaction would occur. 

Significance of LTP

The LTP is a key factor when determining the cost to quote for buying or selling orders. 

Influence of LTP on Stock Prices

Stock markets are largely efficient, meaning they take all available information into account when determining prices. However, some correlations exist between the most recent transaction and typical trade due to investors' experiences with similar stocks and companies. High demand for a stock increases its LTP, potentially leading to a rise in its stock price. Conversely, low demand decreases the LTP, possibly leading to a drop in stock price. LTP is a key indicator of market sentiment and can influence investment decisions.