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Written by Nathalie Okde
Updated 18 October 2025
Table of Contents
LTP full form (Last Traded Price) is one of the most frequently seen terms on trading screens, yet many traders overlook its real significance.
It represents the exact price agreed upon between the latest buyer and seller, giving traders a real-time view of market activity and sentiment.
In this article, we’ll explain what LTP means in the stock market, how it works behind the scenes, how it differs from other prices like CMP and VWAP, and why it matters for informed trading decisions.
Key Takeaways
LTP (Last Traded Price) shows the most recent executed trade and reflects real-time market consensus.
It differs from closing price, CMP, and VWAP, which measure price in different contexts.
Tracking LTP trends helps traders gauge momentum, confirm orders, and improve timing decisions.
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The Last Traded Price (LTP) is the price of the most recent trade that has occurred for a particular asset on a stock exchange.
In simple terms, if the last buyer purchased one share of Company X at $150, then the LTP = $150 until another trade happens.
It updates every time a transaction is executed.
It is recorded along with the last trade timestamp.
It differs from the bid and ask prices displayed in the order book.
It provides traders with a live pulse of market depth and liquidity.
For example, if Apple Inc. stock’s bid price is $174.90, the ask price is $175.10, and the latest trade executes at $175.00, then the LTP becomes $175.00.
The market data feed is a live stream of trading information sent from exchanges to brokers and trading platforms.
It contains the LTP, bid price, ask price, volume at price, and other metrics.
Bid Price: The bid price represents the highest price that a buyer is currently willing to pay for a security.
Ask Price: The ask price (or offer price) is the lowest price at which a seller is willing to sell a stock or asset.
Volume at Price (VAP): The volume at price metric shows how many shares (or contracts) have been traded at each price level.
Each time a trade is matched (a buyer’s order meets a seller’s in the order book), the exchange instantly updates the following data points in the market data feed:
LTP (Last Traded Price) → Price of the most recent transaction
Trade Volume → Number of shares/contracts traded
Trade Timestamp → The precise time of execution
Price Change Percentage → Difference from the previous LTP or closing price
These updates flow to trading terminals, mobile apps, and trading platform data interfaces.
By monitoring this stream, traders gain access to real-time market depth, order book imbalances, and short-term price patterns.
Unlike many market indicators, the LTP (Last Traded Price) doesn’t require any complex computation or weighted averages.
It simply reflects the price of the most recent executed trade recorded by the exchange.
In other words, every time a transaction occurs that price becomes the new LTP. This makes it a real-time reflection of the market’s consensus on value.
Therefore, the LTP Calculation Formula is the below:
Example Calculation:
Suppose five trades for Stock A occur sequentially at 100, 101, 100.5, 102, and 101.8.
→ The LTP will be 101.8, because it represents the price of the last executed transaction.
Many beginners think the Last Traded Price (LTP) shows a stock’s real worth. In truth, it does not.
LTP is the price at which the most recent trade took place. It reflects short-term market sentiment and reacts to demand, supply, and speculation.
Intrinsic value is the company’s actual worth. It depends on earnings, assets, cash flow, and future growth potential.
LTP can change quickly with market news or emotions. During optimism, prices may rise far above real value. In panic, they can fall well below it.
Simply put, LTP is what people pay now, while intrinsic value is what the business is truly worth.
While the LTP (Last Traded Price) is one of the most frequently referenced market indicators, it’s often confused with other pricing terms.
The closing price represents the final value of a stock at the end of the trading day, while LTP reflects the most recent trade executed, even if it occurs after regular market hours.
Aspect
LTP (Last Traded Price)
Closing Price
Meaning
The most recent trade price recorded during active trading.
The final price of the day after the closing auction.
Timing
Updates with every new executed transaction.
Fixed once the trading session ends.
Volatility
Changes continuously throughout the trading day.
Remains constant until the next market session.
Purpose
Indicates real-time market activity and sentiment.
Serves as an end-of-day benchmark for valuation and reporting.
For example, if a stock closes at $150 but a trade occurs later at $152 during after-hours trading, the LTP becomes $152, while the closing price remains $150.
The CMP (Current Market Price) often reflects the latest quoted price between the bid and ask levels, while LTP shows the actual price at which a trade was executed.
CMP (Current Market Price)
Definition
The actual price of the most recent completed transaction.
The most recent visible market quote, not always executed.
Source
Derived from executed trades.
Derived from live order book quotes.
Update Frequency
Updates only when a trade occurs.
Changes whenever a new bid or ask quote appears.
Confirms trade execution and true market value.
Provides traders with indicative pricing before execution.
For example, if a stock’s bid is $99, ask is $101, and a trade executes at $99.5, then CMP ≈ $100, but the LTP updates to $99.5, showing the true executed price.
VWAP indicator measures the average price of all trades in a day, weighted by trading volume, while LTP represents only the most recent trade, offering an immediate pulse of the market.
VWAP (Volume Weighted Average Price)
The latest executed trade price on the exchange.
The average of all traded prices, weighted by trade volume.
Calculation
No formula, it’s the last trade’s price.
VWAP = (Σ Price × Volume) / (Σ Volume).
Focus
Real-time, trade-by-trade update.
Intraday average used for performance measurement.
Indicates short-term price momentum.
Helps assess execution efficiency and institutional performance.
For example, if the VWAP of a stock is $120, but the most recent trade occurs at $125, the LTP indicates bullish pressure above the daily average, signaling potential upward momentum.
The LTP full form (Last Traded Price) changes frequently due to several interrelated market forces.
Knowing what drives these fluctuations helps traders interpret price behavior more accurately.
The fundamental driver of LTP movement is the demand and supply balance between buyers and sellers.
When demand exceeds supply, prices rise, pushing LTP higher.
When supply exceeds demand, prices fall, lowering the LTP.
These shifts are visible in the order book and market depth.
The bid price and ask price determine the range within which LTP moves.
A narrow spread indicates high liquidity and stable pricing, while a wide spread can cause sudden price jumps between trades, especially in low-volume assets.
Announcements such as earnings reports, interest rate changes, or geopolitical events can trigger sharp movements in real-time stock prices, immediately impacting LTP values.
Heavy trading volume tends to stabilize LTP because frequent trades reduce price gaps.
Low volume, on the other hand, can make LTP more volatile, especially in small-cap or illiquid markets.
Automated trading systems continuously scan and execute orders, causing rapid LTP updates within milliseconds.
This is common in modern markets where execution speed affects profitability.
Even after the official session ends, after-hours trading can influence LTP as new information emerges. These trades often cause gaps when markets reopen the next day.
Finally, trader psychology, fear, greed, or optimism, often amplifies LTP movements.
Emotional trading during volatile events can cause LTP to deviate significantly from fundamental value.
The Last Traded Price (LTP) plays a key role in how stock prices move during a trading session.
Reflects market sentiment: LTP changes show whether buyers or sellers are in control. A rising LTP indicates strong buying interest, while a falling LTP signals selling pressure.
Influences investor behavior: Frequent increases in LTP can attract more buyers, pushing prices higher. Continuous declines may trigger panic selling.
Affects short-term volatility: Rapid shifts in LTP, especially with high trading volume, often lead to sharp intraday price swings.
Sets reference points: Traders use LTP as a benchmark to compare with previous closes, support and resistance levels, or moving averages.
In short, LTP reflects real-time market action and can drive short-term price movements through changing sentiment and trading activity.
The role and behavior of LTP (Last Traded Price) vary depending on the type of market, whether it’s equity, derivatives, or commodities.
Understanding these nuances helps traders interpret LTP correctly within each trading context.
In the stock (equity) market, the LTP acts as a direct signal of supply and demand.
When buyers dominate, LTP rises steadily.
When sellers are aggressive, LTP falls quickly.
Stock traders often analyze LTP alongside volume at price and order book depth to understand liquidity zones and trading pressure.
In equities, LTP also influences investor sentiment, especially during earnings releases or news-driven volatility.
In commodities such as gold, oil, or silver, LTP shows the last trade executed in the spot or futures segment.
It reflects global factors like supply-demand shifts, geopolitical risks, and currency fluctuations. In commodity trading, traders track LTP alongside closing price and VWAP to plan hedging and arbitrage strategies.
In cryptocurrency exchanges, LTP changes constantly since trading occurs 24/7.
It represents the real-time consensus between global buyers and sellers, influenced by exchange liquidity, market sentiment, and trading volume.
Shows real-time sentiment: Rising LTP signals buying pressure, falling LTP indicates selling pressure.
Confirms trade execution: Helps traders verify if orders were filled at the expected price.
Guides intraday strategies: Used with VWAP, bid-ask spread, and volume at price to find entry or exit points.
Measures liquidity: Frequent LTP changes mean active trading and tighter spreads.
Improves decision-making: Offers instant insight into market depth, volatility, and short-term momentum.
The Last Traded Price (LTP) is more than just the latest trade value. It can guide traders in making quick and informed decisions.
Intraday traders watch LTP changes to confirm breakouts or reversals. A rising LTP with high volume signals buying momentum, while a falling LTP shows selling pressure.
Scalpers track fast LTP movements to capture small price differences. They focus on liquid stocks with narrow bid-ask spreads.
Swing traders compare LTP with VWAP or the previous day’s close to find entry and exit levels.
Using LTP with tools like VWAP, RSI, and Moving Averages helps traders confirm trends, detect momentum shifts, and time their trades effectively.
LTP is the highest price of the day: The Last Traded Price only reflects the most recent trade, not the day’s peak or lowest value.
LTP remains fixed throughout the session: It changes continuously as each new transaction occurs on the exchange.
LTP is the same as the closing price: The closing price is finalized at the end of the trading day, while LTP updates in real time.
LTP represents the average market price: Unlike VWAP, which averages prices based on volume, LTP captures only the latest executed trade.
LTP alone determines market trend: It must be analyzed alongside volume, order book, VWAP, and bid-ask spread to understand true market direction.
The LTP (Last Traded Price) is a real-time indicator of market sentiment and liquidity.
It differs from metrics like closing price, CMP, and VWAP, offering traders an instant snapshot of true market activity.
Understanding LTP helps in making quicker, more accurate trading decisions in any market environment.
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In trading, LTP (Last Traded Price) is the most recent price at which a stock or asset was bought or sold. It updates in real time with every executed trade and helps traders gauge current market sentiment.
LTP stands for Last Traded Price, the price of the latest completed trade on the exchange. It reflects the most recent transaction between a buyer and a seller.
The last trade price is the same as LTP, the most recent execution price in the market. It shows what buyers and sellers last agreed upon.
There’s no formula, LTP = Price of the Most Recent Trade.
If the last trade happens at $101.80, that becomes the current LTP until the next trade occurs.
Not always. Market price refers to the current quote shown in the order book, while LTP shows the actual executed trade price. In active markets, both are usually very close.
The last price is not calculated but recorded automatically from the latest trade execution. Each completed transaction instantly updates the LTP in the market data feed.
This written/visual material is comprised of personal opinions and ideas and may not reflect those of the Company. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. XS, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Our platform may not offer all the products or services mentioned.
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