Please help me in basics :-(

A

ankushgats

New Member
#1
#1
Hey Guys,
I am newly started working on trading software development but never done trade before so I open an account to take a shot. I know trading much but I am confused about very basic thing.
Suppose a stock XYZ is trading at 110 Rs, then what this price actually indicates, Is it the price somebody is willing to buy or somebody willing to sell??
What i understood about pricing a stock is, when somebody puts a best Bid order(highest) or best offer order(lowest) is becomes NBBO, and same is visible to everybody, but if same is the case then there should be two prices visible, Best Bid price and Best Sell price. But when i see any NSE website or BSE web site or anywhere i am able to see only a single price. So my simple question is what this price indicate, best Bid or Best offer.
Please help me :(:(:(
 
S

stock72

Well-Known Member
#2
#2
that is the LTP --- LAST TRADED PRICE ..


ankushgats said:
Hey Guys,
I am newly started working on trading software development but never done trade before so I open an account to take a shot. I know trading much but I am confused about very basic thing.
Suppose a stock XYZ is trading at 110 Rs, then what this price actually indicates, Is it the price somebody is willing to buy or somebody willing to sell??
What i understood about pricing a stock is, when somebody puts a best Bid order(highest) or best offer order(lowest) is becomes NBBO, and same is visible to everybody, but if same is the case then there should be two prices visible, Best Bid price and Best Sell price. But when i see any NSE website or BSE web site or anywhere i am able to see only a single price. So my simple question is what this price indicate, best Bid or Best offer.
Please help me :(:(:(
Click to expand...
 
A

ankushgats

New Member
#3
#3
Hey Thank u so much for reply. :(
I have few queries about last traded price (LTP).
  1. 1. Suppose a stock is at 110 Rs. that means last trade happened at 110, that means somebody has bought at 110 and somebody has sold at 110. So now nobody left in the market for selling and buying at that price. So then if i placed a market order it must be filled at that price. So lets assume i put a buy market order ,it should be filled at 110 as it is market price now, But nobody is selling at 110 so how this order will get fill at market price of 110 Rs??
  2. 2. If my market order wont get filled at that price, as nobody left for selling and buying at that price, 110, then why to display that price. I mean the available open orders price should be displayed, like buy order of 105 Rs so that when i put a sell order at market price it will be filled with 105 Rs.
Please Help me. M almost there to understand Market things :)
 
S

stock72

Well-Known Member
#4
#4
Y thinking so deep ?:rofl::rofl:

I request to you to just see what the rules laid and let follow it to make money ..
it is good to think and define our own understanding provided we are at that height and power to change the system

now the last traded price will be shown every where .
if u place the market order ( buy ) it will be executed to the lowest
available offer price . it may be more or even less to LTP . and if your qty is more and the first lowest available offer price executed then the rest quantity will be executed to the next offer rate ..




ankushgats said:
Hey Thank u so much for reply. :(
I have few queries about last traded price (LTP).
  1. 1. Suppose a stock is at 110 Rs. that means last trade happened at 110, that means somebody has bought at 110 and somebody has sold at 110. So now nobody left in the market for selling and buying at that price. So then if i placed a market order it must be filled at that price. So lets assume i put a buy market order ,it should be filled at 110 as it is market price now, But nobody is selling at 110 so how this order will get fill at market price of 110 Rs??
  2. 2. If my market order wont get filled at that price, as nobody left for selling and buying at that price, 110, then why to display that price. I mean the available open orders price should be displayed, like buy order of 105 Rs so that when i put a sell order at market price it will be filled with 105 Rs.
Please Help me. M almost there to understand Market things :)
Click to expand...
 
manishchan

manishchan

Well-Known Member
#5
#5
ankushgats said:
Hey Thank u so much for reply. :(
I have few queries about last traded price (LTP).
  1. 1. Suppose a stock is at 110 Rs. that means last trade happened at 110, that means somebody has bought at 110 and somebody has sold at 110. So now nobody left in the market for selling and buying at that price. So then if i placed a market order it must be filled at that price. So lets assume i put a buy market order ,it should be filled at 110 as it is market price now, But nobody is selling at 110 so how this order will get fill at market price of 110 Rs??
  2. 2. If my market order wont get filled at that price, as nobody left for selling and buying at that price, 110, then why to display that price. I mean the available open orders price should be displayed, like buy order of 105 Rs so that when i put a sell order at market price it will be filled with 105 Rs.
Please Help me. M almost there to understand Market things :)
Click to expand...

Yes...There must be seller at 110. Lets say CMP is 110. You place the order. Your order will get executed if there are buyers within certain percentage of the CMP. there was recently circular abt this from NSE. check out the website. And btw... when u place market order..it is nt fixed at 110. It means your are buying from the immediate next seller..
 
A

ankushgats

New Member
#7
#7
Hey Manish, Thanks for ur comments,
I understood. But My first question was, what is the significance of showing LTP, because neither It is a market price(at which buyers or seller are present in market) nor it is best bid(Highest) or best sell(lowest)??
 
Last edited:
amitrandive

amitrandive

Well-Known Member
#8
#8
ankushgats said:
Hey Manish, Thanks for ur comments,
I understood. But My first question was, what is the significance of showing LTP, because neither It is a market price(at which buyers or seller are present in market) nor it is best bid(Highest) or best sell(lowest)??
Click to expand...
Simple Google search helps


Last Trade Price

Throughout the day a stock's price is always fluctuating. The LTP is the price at which the most recent trade occurred. When the stock market is open -- the New York Stock Exchange is open Monday through Friday 9:30 a.m. to 4 p.m. Eastern Time -- the LTP provides the most up-to-date value of a stock. Once the stock market closes, the closing price is the best gauge of value until the stock market opens the next business day.
Bid and Offer

In order for a trade to occur, creating a LTP, there must be traders and investors actively willing to trade the stock. Both buyer and seller are required to complete a transaction. Buyers place bids in the market, specifying how much they wish to buy and at what price. Sellers post an offer, also called an "ask," stipulating how much they want to sell and at what price. Whenever a buy and sell order come together at the same price, a LTP is created.
Price Movement

The price of a high-volume stock moves when enough trades go through at the bid or offer to clear out all the orders at that level. For example, if someone buys 500 shares of a stock when it is priced at $10 and then buys 100 shares at $10.01, the the price has moved up. The LTP tells you which direction the price is moving in real time. When the LTP is rising the stock is going up, when the LTP is dropping, so is the stock.
Placing Orders

The LTP is the price at which the most recent transaction took place, but you may not get the same price if you buy or sell the stock a minute later. Place a market buy order and you'll get the nearest offer price; place a market sell order and you'll get the nearest bid price. Market orders are guaranteed to execute, but you don't know at what price since the bid and offer price can constantly change. Using a limit order, you specify the price at which you are willing to buy or sell. With a limit order you know exactly what price you will get, although there is no guarantee someone else will fill your order.


 
R

right edge

Active Member
#9
#9
ankushgats said:
Hey Guys,
I am newly started working on trading software development but never done trade before so I open an account to take a shot. I know trading much but I am confused about very basic thing.
Suppose a stock XYZ is trading at 110 Rs, then what this price actually indicates, Is it the price somebody is willing to buy or somebody willing to sell??
What i understood about pricing a stock is, when somebody puts a best Bid order(highest) or best offer order(lowest) is becomes NBBO, and same is visible to everybody, but if same is the case then there should be two prices visible, Best Bid price and Best Sell price. But when i see any NSE website or BSE web site or anywhere i am able to see only a single price. So my simple question is what this price indicate, best Bid or Best offer.
Please help me :(:(:(
Click to expand...
iF XYZ IS TRADING @110...IT MEANS IT IS A FAIR PRICE WHERE BUYER AND SELLER AGREE WITH PRICE FOR TRANSACTION...
 
Pradeep Narayan

Pradeep Narayan

Well-Known Member
#10
#10
ankushgats said:
Hey Thank u so much for reply. :(
I have few queries about last traded price (LTP).
  1. 1. Suppose a stock is at 110 Rs. that means last trade happened at 110, that means somebody has bought at 110 and somebody has sold at 110. So now nobody left in the market for selling and buying at that price. So then if i placed a market order it must be filled at that price. So lets assume i put a buy market order ,it should be filled at 110 as it is market price now, But nobody is selling at 110 so how this order will get fill at market price of 110 Rs??
  2. 2. If my market order wont get filled at that price, as nobody left for selling and buying at that price, 110, then why to display that price. I mean the available open orders price should be displayed, like buy order of 105 Rs so that when i put a sell order at market price it will be filled with 105 Rs.
Please Help me. M almost there to understand Market things :)
Click to expand...
What you see in the LTP is the last completed trade price, you can also see the qty.

When you place an order at Market Price, you are not placing the order at LTP - but at either the best available bid or offer price. In case you wish to buy - then the order is triggered at the best available offer price & vice-versa for selling.

In case you want to buy/sell at the LTP then you place a Limit Order at the LTP or a preferred price of your choice. This will get reflected at the bid/offer section as appropriate.
 
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