When I started my journey in the stock market 10 years back, then I was unsure which things you should analyze before narrowing down your buying priorities. Over time, I learned a lot many things which were never taught in the classroom. Guess that comes with time & experience. But when I’m here then you need not worry friends. I’m here to make your journey a little easier which was not so possible a decade back. Therefore in this Stock Market Series, I’m going to discuss What is ATP in the Share Market with an example and how is it different from LTP? Let’s begin then!
ATP refers to the average traded price. In simple terms, it is what buyer buyers have paid for one share on average throughout a specific time. It is calculated as the price of the shares multiplied by the number of shares traded in a day divided by the number of shares traded in a day. It’s is important to know how much approximate the amount buyers have paid for 1 stock of that company. This price is crucial to understanding how the stocks behave during the ups and downs of the market. When an important new break, stocks prices tend to react wildly but then they settle down with a move in the opposite direction as the market digest that piece of information.
Let’s understand ATP with an example so that while trading we must know how to study the trend of ATP. Well ATP can be calculated for daily, weekly, monthly, or Quarterly. Just to understand well we take the example of daily calculation. Let’s say Britannia stocks open at Rs.100 and 10000 shares changed the hand at this price. Later in the day, the price rose Rs.105 and again 5000 shares changed the hand at that price. By day end the price reached a level high of Rs.120 and around 20000 shares changed the hands again. Therefore the volume of the shares will be 100*10000+105*5000+120*20000. Hence, the volume of trade accounts for Rs.3925000. The total number of trade took that very day is 10000+5000+20000=35000.
ATP= Price of Stock X Number of Shares / Total Number of Shares Traded
= 100*10000+105*5000+120*20000/ (10000+5000+20000)
= 3925000/35000 = Rs 112.143/-
What is the difference between ATP and LTP?
Now we have understood ATP let’s check out how it’s different from LTP. Before we understand the difference between the two of them, we need to understand LTP as well. LTP refers to the last traded price. It is the price locked on which the last transaction or trade occurred on the day. LTP is essential in determining in which direction the stock price will move on the next day. Therefore, LTP is the indicator of the price movement on a real-time basis.
Thus, ATP means the average price at which an investor trades for a particular stock similarly the LTP would mean the closing price of the share. In the case of the above example, Rs.120 will be the LTP for Britannia’s Stock.
ATP in Zerodha
Time needed: 1 minute
Let’s check out how you can check the ATP for the stock on your Zerodha Kite App:
Log in onto your Zerodha Kite App with your Login credential.
- Stock Name
Type the stock name in the Universal Search Bar and click on Chart Options
Scroll a little down on the market in-depth chart and you will find ATP
Hope you now know where you can check the average Trade price plus the last traded price on the Zerodha App.
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