What is LTP in the Share Market? Meaning & How It Affects Trading Decisions

LTP stands for Last Traded Price. It is the price at which a stock was last traded. It helps those who invest in the stock market, like investors and traders, who want to know the current market value of a stock.

Example:

Aman wants to buy shares of XYZ Company. He checks the stock’s Last Traded Price (LTP), which shows ₹150, meaning the most recent transaction for XYZ shares happened at this price.

When Aman places his buy order at ₹150, he hopes the price will rise so he can sell later at a profit. But here’s what happens next:
 

• The LTP keeps changing with every new trade; it could move to ₹149 or ₹152 within seconds.
   

• If demand increases, the next trade might happen at ₹151, making Aman’s purchase instantly show a ₹1 gain.
   

• If selling pressure rises, the next LTP could drop to ₹149, showing a ₹1 loss on paper.

LTP vs Other Prices:

This table shows LTP, Bid Price and Ask Price.

"The LTP (Last Traded Price) constantly changes as new transactions occur in the stock market."

Aman can make smarter choices when buying or selling stocks. LTP keeps him updated on the stock’s current price in simple terms and helps him do better in the stock market.

This article helps you understand what LTP is and how LTP is determined with an example.

Read More – Understanding Share Price Movements in Major Indian Stocks

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

LTP (Last Traded Price) is the most recent price at which a stock was bought/sold on the exchange. It changes with each transaction, showing real-time market value.

Ravi’s Explanation (Experienced Trader):

Ravi, who trades daily, says: “LTP is like the last sold price of a shirt in a shop. If the last customer paid ₹500, that’s the LTP until the next sale happens.”
 

On a podcast, he explains: “I watch LTP closely because it tells me where the stock is right now. If LTP increases, demand may increase. If it falls, sellers might be more powerful.”

Why LTP Matters to Traders Like Ravi:
 

• Real-Time Tracking: LTP updates instantly with every trade.

• Buy/Sell Decisions: Ravi checks LTP to time his trades.

• Liquidity Check: High trading volume, which means LTP is related.

This table shows you LTP with an example:

This table shows how Ravi takes trades according to LTP.

Key Takeaways from Ravi:

• It shows the current market sentiment.

• Ravi said, If we combine LTP and volume, then you will see better accuracy.

Ravi’s advice: “Don’t just watch only LTP or depend on LTP. You have to see the bigger picture, volume, trends, and news, if you want to be successful in the stock market.”
 

How is LTP (Last Traded Price) Determined?

LTP is the price at which the most recent trade of a stock happened. It is set by the last matched buy and sell order in the market.

Umar’s Experience (12-Year Trader):
 

Umar explains: "LTP is like the final agreed price between a buyer and seller. If I sell 100 shares of ABC Ltd. at ₹200, then ₹200 becomes the new LTP."

How LTP is Decided (Step-by-Step):
 

• Step 1: A buyer places an order (Suppose: "Buy 50 shares at ₹150").

• Step 2: A seller agrees and matches the order (Suppose: "Sell 50 shares at ₹150").

• Step 3: The trade executes, and ₹150 becomes the new LTP.

Factors Affecting LTP:

The table shows you the factors affecting of LTP.

This table helps you understand how Demand and Supply affect LTP.

Also Read  - What is the Stock Market? Meaning, Functions & How It Works
 

Key Points from Umar:

• LTP is not fixed; it moves with every trade.

• It depends on real transactions, not just demand or supply.

• Big trades (like institutional orders) can shift LTP suddenly because they have a large amount of funds.
   

Umar’s tip: “Watch LTP with trading volume. If LTP rises with high volume, the trend is strong.”

Conclusion
 

LTP (Last Traded Price) acts like the market's live heartbeat for traders like Umar, a 12-year veteran. He sees it as an auction's latest bid, constantly shifting with each new trade. When ABC Ltd.'s LTP jumps from ₹200 to ₹210, Umar reads it as rising demand, prompting quick decisions. 

But he knows LTP is just a real-time snapshot, not a crystal ball. Sudden drops make him check for news or selling pressure. Umar’s golden rule? "LTP shows where a stock is now, but pair it with volume, trends, and sentiment to guess where it’s headed." Smart traders use LTP as one tool, not the whole toolbox.

FAQS

How is LTP different from the closing price?

Closing price is fixed at day’s end, while LTP moves non-stop during market hours, reflecting real-time activity.
 

Can LTP help predict future prices?

It only shows where the stock is now, not where it’s headed. Traders combine it with trends and volumes for better guesses.
 

Why does LTP matter for buying decisions?

A rising LTP suggests growing demand (but check if volumes support it). A falling LTP may signal profit-booking or bad news.

Do all stocks update LTP at the same speed?

No, heavily traded stocks (like Reliance or TCS) update every second, while less active ones may take minutes between price changes.

What if there’s no LTP for a stock?

It means no trades have happened recently. Check bid/ask prices instead to gauge where buyers/sellers are willing to transact.

How do big orders affect LTP?

A single large trade can temporarily spike/drop the LTP, but the price stabilises if follow-up demand doesn’t match.

Should I panic if LTP drops sharply?

Not immediately. Check trading volumes; a low-volume dip may just be a blip. High-volume falls could mean real trouble.

Does LTP include brokerage charges?

No, LTP is just the stock’s last traded price. Brokerage and taxes are added separately to your final cost.
 

Can LTP be different on different stock exchanges?

Yes, if a stock is listed on multiple exchanges, LTP may vary slightly due to different buyers and sellers.

How does LTP affect stop-loss orders?

Stop-loss triggers based on LTP. If LTP hits your stop-loss price, your shares automatically sell at the next available price.

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