If you’ve ever looked at a stock quote screen and felt like it was throwing alphabet soup at you, you’re not alone. Bid, ask, OHLC, VWAP… and right there in the middle of everything: LTP.
So let’s clear it up right now.
LTP = Last Traded Price.
That’s it. Three words. Simple definition.
But — and this is important — understanding what LTP actually tells you, how it behaves in real trading, and how traders misuse it is where things get interesting.
This article is for people who don’t just want definitions, but want to think clearly about the market.
What Is LTP in the Share Market?
LTP (Last Traded Price) is the price at which a stock was most recently bought or sold on the exchange.
Not:
- the price buyers want
- the price sellers want
- the day’s highest or lowest price
Just the price of the most recent completed trade.
If someone bought Infosys at ₹1,425 a second ago, then ₹1,425 is the LTP — until the next trade happens at a different price.
Think of it like the last handshake between a buyer and a seller.
Why LTP Exists at All
Markets don’t have a single “true” price floating in the air.
At any moment:
- buyers are lining up with different prices
- sellers are doing the same
The LTP is simply the last point where both sides agreed.
That’s why almost every platform uses LTP as the default number you see. It’s the most recent real transaction — not a guess.
LTP vs Market Price — Are They the Same?
This question comes up constantly.
Short answer: most of the time, yes — but not always.
On trading apps, when you see “Market Price,” it usually refers to the current LTP.
But here’s the catch:
- If trading is very active, LTP keeps updating every second
- If trading is slow, LTP might be minutes old
So that “market price” might already be outdated by the time you place an order.
LTP vs Bid Price vs Ask Price
This is where beginners often trip.
Let’s break it with an example.
- Bid price: ₹990 (buyers are willing to pay this)
- Ask price: ₹1,000 (sellers want this)
- Last Traded Price: ₹995
What does this tell you?
- The last deal happened between buyer and seller expectations
- A trade executed at ₹995 earlier
- No trade has happened yet at ₹990 or ₹1,000
LTP is history.
Bid and ask are intentions.
Never confuse the two.
How LTP Moves During the Day
LTP changes only when a trade happens.
This matters more than people think.
If no one buys or sells:
- LTP stays frozen
- Charts don’t move
- Yet demand and supply may still be shifting
In thinly traded stocks, you might see the same LTP for long periods. That doesn’t mean nothing is happening — it means no deal has closed.
LTP in Live Trading Screens
On most platforms, LTP is displayed:
- in bold
- in green or red
- right next to percentage change
That visual emphasis tricks people into giving it more importance than it deserves.
A common mistake:
“The stock is at ₹500 LTP, so I should buy at ₹500.”
That’s not how markets work.
You can only buy at:
- the ask price, or
- whatever price someone is ready to sell at
LTP doesn’t promise availability at that rate.
LTP and Order Placement: What Actually Matters
Let’s talk practical stuff.
Market Order
If you place a market order:
- your trade executes at the best available price
- not necessarily the LTP you saw
In busy stocks, the difference is small.
In low-volume stocks, the difference can surprise you.
Limit Order
If you place a limit order:
- you choose the price
- LTP becomes irrelevant unless it comes near your level
Smart traders use LTP for context, not execution.
LTP vs Closing Price
These two get mixed up a lot.
- LTP: last trade right now
- Closing price: last trade before the market closed
At 3:29 PM, LTP might be ₹1,250.
At 3:30 PM:
- market closes
- ₹1,250 becomes the official closing price — only if that was the final trade
Next day, everything resets, but yesterday’s closing price stays on the chart.
LTP in Charts — Useful or Not?
On charts, LTP is just the current data point.
Candlesticks, for example, rely on:
- open
- high
- low
- close
LTP feeds into the current candle but doesn’t mean much alone.
Obsessing over every tick in LTP can mess with your decisions.
Short-term traders watch it closely.
Long-term investors usually shouldn’t.
LTP and Price Change Percentage
That percentage you see next to LTP?
It’s calculated using the previous closing price.
Example:
- Yesterday’s close: ₹1,000
- Current LTP: ₹1,050
Displayed change:
- +₹50
- +5%
That number updates every time LTP updates.
Important point:
If LTP jumps because of one small trade, the percentage jumps with it — even if volume is tiny.
When LTP Can Be Misleading
This part matters more than definitions.
1. Low-Volume Stocks
One random trade can shift LTP sharply.
You see:
- +8% flash on the screen
Reality: - hardly any shares traded
That’s not strength. That’s noise.
2. Sudden Spikes
Algorithmic orders can trigger brief price prints that don’t last.
LTP shows it.
Charts record it.
But the price snaps back seconds later.
Chasing those moves is costly.
3. Illiquid Options
In options trading, LTP can be dangerous to trust blindly.
Wide bid-ask spreads mean:
- LTP might be far from where you can actually trade
Always check depth.
LTP in Futures and Options (F&O)
Same full form. Same idea.
- LTP = last executed trade price for that contract
But F&O adds:
- expiry dates
- leverage
- lower liquidity
That makes LTP jumpier and less reliable as a guide.
Professional traders look at:
- volume
- open interest
- bid-ask spread
LTP alone is weak information here.
A Simple Mental Model for LTP
Here’s an easy way to think about it:
LTP is where the market was a moment ago, not where it’s going and not where it currently stands for you.
It’s a snapshot of agreement, nothing more.
Useful:
- to track movement
- to compare with past prices
Dangerous:
- when treated as a signal
- when used emotionally
Why Beginners Fixate on LTP (And Why That’s a Problem)
Almost everyone starts this way.
You open the app.
The big number moves.
Dopamine kicks in.
The app design pushes you to stare at LTP.
But serious market thinking shifts focus from:
- “What is the price now?”
to - “Why would someone buy or sell here?”
LTP doesn’t answer the second question.
LTP for Long-Term Investors
If you’re investing for months or years:
- LTP is background noise
- daily changes don’t matter much
Better questions:
- Is this business strong?
- Is valuation reasonable?
- Am I comfortable owning this?
Checking LTP every five minutes won’t improve outcomes.
LTP for Short-Term Traders
If you trade short timeframes:
- LTP matters, but context matters more
Pair it with:
- volume
- order book
- broader price levels
LTP without structure is just movement.
Final Thoughts: Use LTP, Don’t Worship It
So yes — LTP full form in share market is Last Traded Price.
But memorizing that won’t help you trade or invest better.
Understanding what LTP represents — a single completed deal in a sea of intentions — is what changes how you read the screen.
Use it as:
- a reference
- a timing input
- a way to stay oriented
Not as a signal. Not as a guarantee.
If you can do that, you’re already thinking more clearly than most people who stare at stock prices all day.
And that’s a quiet advantage worth keeping.
