ltp in stock market

LTP In Stock Market: What Is It & How It Is Calculated?

Stock Market – a place where the prices of shares of different companies change constantly. You can trade in commodity or equity the choice is yours. Thousands of transactions take place every minute of the trading session and there are many terminologies that you need to know as a trader. One such term is LTP in stock market.

What is LTP in Stock Market?

The last price at which the trade occurs is the LTP of a stock. The full form of LTP is Last Traded Price. It serves as a base price and depends on the market sentiment. It changes with the change in demand and supply of stocks.

LTP helps the buyers/ sellers discover relevant prices of stocks that are being traded and also helps predict the price range for them to trade. This price is volatile in nature. It is closest to the actual price when large volumes of stocks of a company are being traded. You can check the LTP of any stock on Shree Varahi, NSE, and BSE.

Significance Of LTP

The Last Traded Price can help in:

  • Understanding the price fluctuations in past as well as predicting future fluctuations.
  • Determining suitable ask or bid price.
  • Understanding and studying the market-depth information on a company with historical data as well
  • Predicting the direction of stock market movement whether it is upward or downward.
  • Forecasting future price range
  • Establishing trends in the price of a stock

How is The LTP In Stock Market calculated?

It is calculated in real-time and reflected on the trading screen of the traders. A transaction in the stock market can occur only in the trading session. The price at which the seller is selling is known as the Ask price and the price which the buyer quote to buy a stock is known as the Bid price. When the ask and bid prices match the transaction is completed by the exchange.

Example – Suppose a seller is asking ₹100 for a stock of Company A but there are no buyers at that price as the bid price is ₹80, the trade does not take place. But when a seller is willing to sell at ₹80 (the ask and bid price match) the trade is successfully executed. Thus making ₹80 the Last Traded Price. The frequency of changes in the last traded price depends on the liquidity of the share of the company.

Trading Volume and Its Effect On LTP

Trading volume is the number of shares traded at varied prices in a specific period. The stocks with higher trading volumes have less volatile prices as they bring liquidity and do not impact significantly during market fluctuations. The buyers and sellers in this case place desired prices. While stocks with low trade volumes lead to an illiquid market, the difference between the ask price and the bid price may become huge. Low traded volume has a strong impact on price volatility.


The Average Traded Price is the full form of ATP in the stock market. It is the price that the buyers have paid for one share on average in a period. It can be daily, weekly, monthly, or quarterly.

Example – Suppose in a day share of Company X is traded as follows:

10 shares at the price of ₹100 (10*100) = ₹1000

20 shares at the price of ₹110 (20*120) = ₹2400

50 shares at the price of ₹150 (50*150) = ₹7500

20 shares at the price of ₹140 (20*140) = ₹2800

The total trading volume for the day is ₹13,700 and the number of shares traded is 100. The ATP is calculated by dividing the total volume by the total shares traded, i.e., 13700/100 = 137.

The Average Traded Price in the above example is ₹137.

Wrapping Up

The Last Traded Price is an information source for a trader as they place their bid as per the price at which the stock was last traded. LTP combined with other factors may help in predicting accurate estimates in the stock market.

Decisions about trading in stock should not be taken in a haste. Due time must be given to it as various factors influence the price of a stock and it may behave the opposite of what you might have been thinking which may result in the avoidance of some investment mistakes.

LTP is affected by the volume of trade that takes place. The higher the amount of transaction of stock the less chance of price fluctuations in it.

The ATP is the average price of a share during the full trading day while the LTP is the price at which the last transaction took place.


Why is LTP important in the stock market?

It helps the sellers and buyers of a stock determine the ask and bid price respectively and the direction of that stock’s price.

Is the Closing Price and the Last Traded Price the same?

The LTP is the price at which the last trade occurs i.e., even before 3:30 PM while the closing price is the price at 3:29:59 PM. For all purposes, only the closing price matters.

Where is the LTP seen on Shree Varahi’s desktop app?

You can see the Last Traded Price of stock by pressing F6 on your keyboard and all the details will appear of the selected stock.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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