What is LTP (Last Traded Price) ?

If you’ve ever glanced at a stock trading app or watched business news, you’ve probably come across the term LTP flashing on the screen beside a stock’s name.
 

So, what exactly is LTP? Why do investors and traders pay so much attention to it? And does it matter to you as a beginner or even a seasoned investor?
 

What Does LTP Stand For?

LTP simply stands for Last Traded Price.
It’s exactly what it sounds like: the price at which a particular stock was last bought or sold.

Think of the stock market as a giant, busy marketplace. Traders are constantly buying and selling shares, and the LTP is the price tag at which the most recent trade happened.

• If someone buys 10 shares of Infosys at ₹1,500, then ₹1,500 becomes the new LTP.
• If, 10 seconds later, someone else buys shares at ₹1,502, then ₹1,502 becomes the new LTP.

It’s a live, dynamic number — changing second by second as trades happen.

Why is LTP Important?

At first glance, LTP might seem like just another number.
But it’s actually super important because it tells you:

• Where the action is happening — Is the stock moving up or down right now?
• The market sentiment — Are people willing to buy or sell at higher prices?
• The real-time market value — What is the actual going price if you want to buy or sell right now?

In short, if you want to know what a stock is actually worth at a given moment, you look at the LTP.

LTP vs. Closing Price — Are They the Same?

This is where many beginners get a little confused.
No, LTP and closing price are not always the same.

• LTP is the last traded price at any moment during the trading day.
• Closing Price is the price at which the stock officially closes for the day (around 3:30 PM in Indian markets).

Sometimes, the LTP at 3:30 PM becomes the closing price.
Other times, due to post-market adjustments or averaging methods (like weighted averages in NSE), the official closing price might differ slightly from the final LTP you saw.

So, in simple words:
👉 LTP is live. Closing price is historical.

How Does LTP Impact You As an Investor?

If you’re buying or selling shares, LTP gives you a sense of the market price you’ll be dealing with.

Imagine trying to buy a T-shirt but not knowing its real price at the counter.
Without knowing the latest traded price, you’re kind of shopping in the dark.

When you place an order to buy or sell shares, you have two options:

• Market Order: Buy/Sell immediately at the current LTP.
• Limit Order: Buy/Sell only when the stock hits a price you want.

In both cases, knowing the LTP is critical. It helps you decide:

• How close you are to your target buying price
• Whether the market is too volatile right now
• Whether you should wait a bit or act immediately

Real-Life Example: LTP in Action

Let’s say you’re tracking Tata Motors.

• At 10:00 AM, the LTP is ₹630.
• At 10:10 AM, it jumps to ₹635.
• At 10:20 AM, it falls to ₹628.

What does this tell you?

• Traders are actively buying and selling.
• There's some volatility in the stock.
• If you were planning to buy, you might set a limit order around ₹630 if you believe it’ll stabilize.

Without watching the LTP, you’d have no idea what price movements are happening in real time.

Can LTP Be Manipulated?

Here’s the truth — in low-volume stocks, yes, it’s possible.

In stocks that hardly see any trading activity, even one or two trades can push the LTP up or down by a lot.
That’s why you should always check:

• Volume: Are lots of shares being traded, or just a few?
• Bid-Ask Spread: Is there a big gap between the price people are willing to buy (bid) and sell (ask)?

In highly liquid stocks (like Reliance, Infosys, HDFC Bank), manipulation is almost impossible because thousands of trades happen every minute.

LTP and Intraday Traders

If you’re into intraday trading (buying and selling on the same day), LTP becomes your best friend.

• Traders constantly watch the LTP along with price charts.
• They make split-second decisions to buy, sell, or hold based on the movement of LTP.
• A sudden spike or drop in LTP can trigger a buying or selling frenzy.

For serious traders, the LTP isn’t just a number — it’s a heartbeat they monitor all day long.

A Few Handy Tips About LTP

• Always look at LTP along with volume — high volume + rising LTP = healthy movement.
• Don’t panic over minor fluctuations — tiny changes happen every second.
• In volatile markets, LTP can swing wildly — stay calm and stick to your plan.
• For long-term investors, daily LTP is less important — focus more on company fundamentals.

Final Thoughts

LTP — Last Traded Price — sounds complicated but is actually simple once you think about it like checking the latest price tag in a busy marketplace.

It’s dynamic, it’s real-time, and it’s one of the first things you should check before making a trade.
However, remember: while LTP tells you what’s happening now, it doesn’t tell you why it’s happening.
That’s where understanding fundamentals, news, and broader market trends comes into play.

So next time you open your stock trading app and see the LTP flashing, you’ll know exactly what it means — and how to use it to your advantage!