How Does Share Market Works & What is LTP, CMP, LTQ, LTT?

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Share Market

Share market and stock market are the same thing. Today we will discuss about 3 points.

  1. what is share?
  2. What is share market and how to trade in it?
  3. What are the requirements for trading in the stock market?
Share Market

To grow any company, money is needed for which small parts of the company are taxed.Those parts are sold to the public.

For example:

Suppose there is a company and its value is ₹ 5000000 and to grow it needs 4000000 more.According to ₹ 10 a share, the amount of money needed is divided and the number of shares formed is made public for buying in the market.In this way, when the public buys all the shares, they get a stake in the company.

Share Market,

In earlier times, the sale purchase of shares used to be physical. And the shares were auctioned. Now everything is online so you can buy the shares from the comfort of your home.

There are two popular markets for selling them on the buy side. First is NSE and second is BSE. The full form of NSE is National Stock Exchange and the full form of BSE is Bombay Stock Exchange.

share market

Although there are many other markets like Kolkata Stock Exchange but these two are the most popular.

How many companies are listed on NSE and BSE?

  • NSE 1700 companies
  • BSE 5400 companies

The fluctuations that occur inside NSE are called Nifty and the fluctuations inside BSE are called Sensex.

How share market works ?

Suppose someone has to sell shares and at the same time another person has to buy the same shares, then there is NSE and BSE market in between.

Through them both those persons can buy and sell their shares and the markets in between such as NSE and BSE take their commission and through which sellers and buyers can buy and sell their shares. Buying and selling shares in this way, is how the stock market works.

How to start trading in stock market?

You must have a savings bank account to buy and sell shares in the stock market. After that we have to open a demat account which is easily opened online and it costs 300 to ₹ 500. These are one time charges. After opening a demat account, we can know the details of our shares and through that we can also buy and sell shares.

Whatever loss and profit we make after buying and selling shares, it will first come in our demat account and then we can transfer that profit from our demat account to our savings bank account.

To work in the share market, the most important thing is knowledge, with the help of which we can earn profit in the share market.

Now we will know about some topics, only after knowing which you can get complete knowledge about the share market.

what is LTP in share market

The full form of LTP is Last Traded Price. Which means the price at which the shares have been bought and sold in the last or most current time. Suppose someone has bought 1 share for ₹95 and someone else sold the same share for ₹95. Thus, one share is bought for ₹95 and one share is sold, then we can say that I have a deal for ₹95. So now the LTP (Last Standard Price) of that share is ₹95.


Suppose the next deal is done at 110 then the LTP for that time will be 110. This means that the price at which the latest deal will be done is called LTP. In the stock market, the share price keeps on increasing and decreasing. All this happens based on the demand and supply of the market. You can keep the delivery or CNC shares with you for as long as you want, it is a kind of investment.

Suppose we want to buy a share for ₹ 100 and a seller wants to sell the same share for ₹ 100, then at this time the transaction will be completed because we want a share of ₹ 100 and at the same time another seller wants to sell the same share for ₹ 100. Therefore, the last traded price at this time will be ₹ 100, so here the LTP will be ₹ 100.

What is CMP ?

CMP= current market price

Suppose a share was sold at the last minute(LTP) for ₹ 100. And the seller made an offer of ₹ 102. And if the buyer wants to buy it for Rs 101, then the CMP will be Rs 102.

Difference between LTP and CMP

Look, LTP is the price that the share was sold for at the last time in rupees. We will call it LTP. When CMP means current market price. Means how much the share is running at today’s time, it is not necessary that how much the share was sold at the last time, we will get it today at the same rate.

Its rate keeps going up and down, that’s why we will get shares in today’s time, we call it CMP and when the share was sold at last time, it is called LTP.

What is LTQ?

LTQ= last traded quantity

The number of shares that were bought and sold at the last time is called LTQ.

What is LTT?

LTT=last traded time

It means when the last transaction took place in the share market. The time and date on which the last transaction took place is called LTT.