Stock prices never stay the same. Stock prices fluctuate according to the supply and demand for each stock. The asking price for a stock is set by sellers at the rate they are willing to sell their shares. Buyers bid on the stock by offering a price that they are prepared to pay, also known as the bidding value. Stock exchanges match the rates and both parties reach a mutually beneficial amount. The tipping point, or Last traded price, is the price at which stock sales are concluded.
LTP, or the Last Traded price, is the price at which the stock will be sold next. LTP is crucial in determining how stock prices will fluctuate in future.
The stock's last traded price is the price at which the transaction or trade took place. LTP is a number that refers to the past. LTP can be used to determine the stock's value and the volatility of its prices in the past.
Every successful trade moves the LTP. LTP can't be used to set the future selling prices of stocks as it is inactive for only a fraction of second, sometimes even less than that. LTP can be used to determine the stock's perceived value and to calculate the stock's potential range based on past trading history.
The trading volume of stocks, which is the total number of shares sold and bought, is an important metric for determining the LTP. It is a key metric in determining the LTP. The stock will be less volatile if it has a higher trading volume. This means that buyers and sellers will be able to mark their shares at the requested ask and bid prices.
An important point to remember is that LTP cannot be established unless an actual transaction occurs. It is only subjective to the price at which stocks were exchanged.
Predict stock price movements
LTP is crucial in determining attributes like the direction that stock prices are moving. Three sellers of stock X might ask for a price in the region of Rs. 100, Rs. 101, and Rs. 105. This stock is bought at Rs. 100 at first, but once they realize that there are no other sellers at Rs. It might raise their bid to Rs. 101 Stock X's price has risen to Rs. 101 The third seller was unsuccessful in finding buyers for Rs. His ask price would be Rs.105 if 105 was not found buyers. 101 based upon the last traded price. 100 trades can be executed simultaneously in an actual stock exchange. The volume of these transactions determines how much the price fluctuates. The LTP is a measure of the price movement in real-time.
Decide the correct ask/bid price
LTP makes it easier to place market orders as the asking price and the bidding price are all within the same ranges. The stock market is volatile so it's impossible to predict if sellers or bidders will be able to execute trades at the desired prices.
LTP can tell you a lot about a stock. LTP is a measure of whether or not a stock is worthwhile to invest in. It also helps investors decide if the shares have delivered expected profits in the past. LTP helps to determine the stock market's ebb & flow and how prices behave. Find out more about equity trading at our Learning Center.