Today, the freak trader makes headlines in the stock market because of the massive fluctuations caused within a few seconds. In this article, we will inform you about the meaning of freak trades and LTP in the stock market. For more understanding, let us look at the Freak trades.
What do you mean by the freak trades?
A freak trade is a trade in which the trading stage passes over the previous stage and creates the abnormality, then returns to the initial stage. Due to fluctuations, human mistakes, or technical issues, this situation may happen. There is a high possibility of triggering the stop-loss order in the freak trades. The high impact of freak trades with the stop-loss order makes their occurrence in index and stock options contracts. A stop-loss order is considered the best option to minimize losses in the scenario of freak trades. Also, many freak trades do not show on the chart’s platforms; only they receive the data from the exchanges. So, make sure all these trades do not appear on the charts.
What do you mean by the LTP in the stock market?
The entire concept of the stock market is based on the changing price of stock time by time. Those communities traded on the stock market are called LTP in the stock market. This indicates the current price at which the stock is bought or sold. The meaning of the LTP resides in its regular changes, as the LTP in the stock market changes through its lifetime.
Trading volume plays a prime role in the LTP in the stock market. The amount or quantity of the given stock needs to be determined while trading at the given time. The LTP in the stock market, the trading volume helps the traders to determine and affect the price volatility of the stock. If the stock shows a high trading volume, it represents several buyers or sellers involved in it. On the other hand, if the trading volume is low, only a few orders are placed, and the transaction on every order makes impacts stock volatility.
What is the importance of the LTP?
In the stock market, the LTP function is considered the based price that depends upon the bid price by the traders. Understanding the analysis of the LTP in the stock market is one of the important pieces of information that the trader requires. The detail present on the LTP in the stock market can help the traders establish the trend in stock price, so the trader trades according to the trends.
Conclusion
There is always confusion about whether the stock’s closing price is considered the last price traded stock. In conclusion, we can say that the last stock trade price has the same meaning as the closing stock price. Here we informed you about the importance of the trading volume and LTP.
