ATP Full Form In Share Market

ATP Full Form In Share Market

ATP stands for Average Traded Price in the share market. This refers to the average price at which a particular stock is traded throughout a trading day. It is calculated by dividing the total traded value by the total quantity traded for the day.

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ATP In Stock Market 

In the stock market, ATP, or Average Traded Price, is the weighted average price of all the trades executed during a specific time period. This figure represents the mean value at which a particular security has been traded throughout the day. Traders often use it to benchmark the day’s trading activity and identify the trend of the stock’s price movement.

For example, suppose a share of XYZ company is traded at different prices throughout the day – Rs.100, Rs.102, Rs.105, and Rs.103. The ATP of the XYZ share for the day would be the average of all these prices, which gives Rs.102.5. This average traded price helps traders in decision-making and understanding the stock’s performance better.

How To Check Atp In Share Market?

Checking the ATP in the share market is straightforward, as most trading platforms provide this information. You can typically find it in the market depth or the stock details section of the platform. 

ATP Formula In Stock Market

In the stock market, the ATP or Average Traded Price of a stock is calculated using the following formula:

ATP = Total Traded Value / Total Quantity Traded

For instance, if the total traded value of a stock for the day is Rs.10,00,000, and the total quantity traded is 10,000 shares, then the ATP of the stock for the day would be Rs.10,00,000 / 10,000 = Rs.100.

This formula helps traders to calculate the average price at which the stock has been traded during the day, assisting them in their trading decisions.

What is the difference between ATP and LTP?

The main difference between ATP and LTP is that ATP, or Average Traded Price, represents the average price of all the trades conducted for a stock during the trading day. On the other hand, LTP or Last Traded Price refers to the price at which the last trade of a particular stock was executed.

ParameterATP (Average Trading Price)LTP (Last Traded Price)
MeaningThe average price of all the trades conducted during the dayThe price of the last executed trade
PurposeHelps in understanding the overall trend of the stock’s priceProvides the most recent trading price
ExampleIf a stock were traded at Rs.100, Rs.105, Rs.102, Rs.103 throughout the day, the ATP would be the average of these pricesIf the final trade of the day for a stock was executed at Rs.105, the LTP would be Rs.105
CalculationSum of all trades’ prices divided by the total number of tradesThe price of the last executed trade
Time SensitivityReflects the price trend over a longer duration, covering multiple trades during the dayRepresents the latest price at the time of execution
Trade ConsiderationTakes into account all trades conducted throughout the dayConsiders only the most recent trade
Impact of Large TradesLarge trades can significantly impact the ATPLarge trades can impact the LTP depending on their timing

Limitations of ATP

The main limitation of ATP is that ATP may not accurately reflect the current market price of a stock, as it is an average of the entire day’s trades.

  • Lack of Real-Time Information: ATP is an average of the trades over a day and doesn’t necessarily reflect the current price or the price at which the stock last traded (LTP).
  • Influence of Large Trades: Large volume trades at significantly higher or lower prices can skew the ATP, making it less representative of most trades.
  • Ignoring Time Factor: ATP does not consider the time of trades. A significant price change later in the day will impact the next day’s opening price, which is not reflected in the ATP.
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ATP Full Form In Share Market- Quick Summary

  • ATP stands for Average Traded Price in the share market, representing the average price at which a stock is traded throughout a trading day.
  • ATP is a crucial metric in the stock market, providing traders with a benchmark for a stock’s daily trading activity and trend identification.
  • Checking ATP in the share market is straightforward and can be found on most trading platforms or calculated manually by dividing the total traded value by the total quantity traded.
  • The formula for calculating ATP in the stock market is ATP = Total Traded Value / Total Quantity Traded.
  • ATP and LTP (Last Traded Price) differ because ATP represents the average price of trades during the day, while LTP indicates the price of the last executed trade.
  • Despite its usefulness, ATP has limitations, including the lack of real-time information, the influence of large trades, and ignorance of the time factor in trade execution.
  • Invest in share market with Alice Blue. Alice Blue offers a user-friendly platform at low brokerage fees that can help you save more than ₹ 13200 every year.

ATP In Stock Market – FAQs  

1. What is ATP in stock market?

ATP, or Average Traded Price, in the stock market, is the weighted average price of all the trades executed for a specific security during a specific time period. It helps traders understand the average price at which the stock has been traded throughout the day and assists in decision-making and understanding the stock’s performance better.

2. How is ATP calculated in stocks?

ATP or Average Traded Price in stocks, is calculated by dividing the total traded value of the stock by the total quantity of the stock traded. The formula is ATP = Total Traded Value / Total Quantity Traded. It gives the average price at which a particular stock has been traded throughout the day.

3. Is VWAP and ATP the same?

No, VWAP (Volume Weighted Average Price) and ATP (Average Traded Price) are different. While both are averages, VWAP considers the volume of shares traded at a specific price, making it a volume-weighted average. On the other hand, ATP is a simple average of the prices at which trades were executed without consideration of the volume of shares traded at each price.

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