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Have you ever found yourself curious to know what is LTP in Zerodha? If that is the case for you, don’t feel alone – the LTP can provide invaluable information to investors looking to track its performance on the platform.
In this article, we’ll dive deeper into what does LTP mean in Zerodha. We will address factors that could alter LTP in Zerodha and ways you can use LTP to make informed investment decisions.
What is LTP in Zerodha
LTP stands for Last Traded Price.
LTP meaning in Zerodha is the last price at which a stock has been traded on an exchange. LTP updates live, so you can always view its latest trade.
How does LTP in Zerodha work
In Brief, Stock prices constantly fluctuate, so the LTP updates in real-time to see the most up-to-date value at which a stock was traded.
As soon as a trade is executed, the LTP is instantly updated to reflect its new price, providing traders instantaneous access to information regarding stock trade prices and helping them make informed trading decisions.
Difference between LTP in Zerodha and Closing Price
Here’s the LTP vs Closing Price:
| Feature | LTP in Zerodha | Closing Price |
|---|---|---|
| Definition | The most recent price at which a stock is traded on the stock exchange. | The average price of all the trades that took place in the last 30 minutes of trading. |
| Frequency of update | Updated in real time. | Updated once at the end of the trading day. |
| Based on | The last trade that took place. | The average of all the trades that took place in the last 30 minutes of trading. |
| Accuracy | Not always accurate, as it can be manipulated by market makers and other large traders. | More accurate, as it is based on a larger sample of trades. |
| Usefulness | Can be used to track the price movement of a stock. | Can be used to determine the overall trend of a stock’s price movement. |
| Relationship | The LTP is usually close to the closing price, but it can sometimes be different. | The closing price is usually higher than the LTP if the stock’s price went up in the last 30 minutes of trading. The closing price is usually lower than the LTP if the stock’s price went down in the last 30 minutes of trading. |
Difference between LTP in Zerodha and Market Price
| Feature | LTP in Zerodha | Market Price |
|---|---|---|
| Definition | The most recent price at which a stock was traded on the stock exchange. | The current price at which a stock is trading. |
| Frequency of update | Updated in real time. | Updated continuously as buyers and sellers interact. |
| Based on | The last trade that took place. | The price at which a buyer and seller are willing to trade the stock at that moment in time. |
| Accuracy | Not always accurate, as it can be manipulated by market makers and other large traders. | More accurate, as it is based on the current interaction of buyers and sellers. |
| Usefulness | Can be used to track the price movement of a stock. | Can be used to determine the true price at which a stock is trading. |
How to find LTP in Zerodha
It’s very easy to find LTP in Zerodha.
Let’s say you want to know the LTP of Reliance stock. For that, first you need to search for ‘Reliance’ in the search bar and then add its stock in your marketwatch.
To find the LTP, you can look at the “Last” column in your watchlist. The “Last” column shows the price of the most recent trade that took place for Reliance and that is your LTP.
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How to Use LTP in Zerodha to Your Advantage While Trading?
LTP indicates a stock’s price movement; when its values increase over time, this could indicate a rise in price trend for that stock.
An uptrend means that the stock’s price will likely continue to increase over time, while an ongoing decline indicates it could continue doing just that.
However, if a stock’s LTP consistently drops over time, that indicates it may be on a downward spiral, and its price may continue to fall.
Here are a few ways LTP can be utilized as an asset when trading:
- Locate Trends: LTP can be an invaluable resource in spotting the price movements of stocks. When the LTP rises consistently, that could indicate that an uptrend exists. At the same time, when it falls consistently, that could signal a downtrend.
- Set Limit Orders: LTP can help you set limit orders. A limit order allows you to purchase or sell stocks at a specific price; for instance, if you believe a stock’s price will increase soon, setting a limit order could help ensure you buy at that specific time. Once LTP reaches its limit price and executes it successfully, your order will be completed and executed; you will own that stock.
- Set Stop-Loss Orders: LTP can also assist in setting stop-loss orders. A stop-loss order allows you to sell stocks if they fall below certain levels, making an LTP order effective if its price reaches your stop-loss level and your stop-loss price. Your stop-loss price will then be executed, and you will sell off that stock.
- Comparing LTP with Other Indices: LTP can be used with other indicators, like moving averages and Bollinger bands, to make more informed trading decisions.
Only some LTP calculations can be trusted as accurate. As its data comes from a trade that took place recently, its price can change between trades. Furthermore, market makers and other large traders may use LTP manipulation techniques to alter its accuracy.
Even with its restrictions, LTP can still prove valuable to traders. By understanding how LTP operates and applying it effectively to trading decisions, traders can make more informed decisions.
Frequently Asked Questions (FAQs) about What is LTP in Zerodha
Wrap up on What is LTP in Zerodha
LTP (or Latest Traded Price) can provide a valuable gauge for tracking stock price movements, and by understanding how LTP calculations work and where you can locate them, you can make more informed trading decisions.
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