What is the Last Traded Price?
Last Traded Price (LTP) refers back to the most current rate at which an economic asset which includes a stock, commodity, forex, or cryptocurrency changed into successfully sold and sold in a marketplace. It is a real-time fee that fluctuates continuously primarily based on marketplace hobby and is a key reference point for traders and investors.
Importance of LTP
- Market Price Indicator: LTP helps investors apprehend the contemporary market cost of an asset.
- Decision-Making Tool: Investors use LTP to make buy/promote selections primarily based on charge traits.
- Liquidity Measurement: Frequent adjustments in LTP suggest excessive trading pastime and liquidity.
- Benchmark for Pricing: LTP serves as a reference for placing bid/ask fees and executing limit orders.
- Impact on Trading Strategies: Day traders and high-frequency investors depend on LTP for short market entries and exits.
Factors Affecting LTP
- Market Demand and Supply: Higher demand increases LTP, even as higher supply decreases it.
- Trading Volume: High trading extent leads to greater common charge updates.
- Market News and Events: Economic reports, corporation income, or geopolitical occasions influence LTP.
- Order Execution Speed: Faster trading systems update LTP greater regularly.
- Liquidity of the Asset: Highly liquid property has smaller LTP fluctuations, while illiquid belongings display better volatility.
Key Takeaways
Last Traded Price (LTP) is the most recent fee at which an asset was offered or sold inside the marketplace, reflecting actual-time valuation. It is influenced by demand and supply, trading volume, market news, and liquidity. LTP facilitates traders and investors to make knowledgeable decisions, tune marketplace traits, and determine asset liquidity. It differs from commencing, ultimate, bid, and ask prices, serving as a key reference for pricing and order execution.
