CMP

CMP (Current Market Price) is the most recent price at which a security was traded on the exchange. It is interchangeably used with LTP (Last Traded Price) in Indian market terminology. The CMP is the price you see on stock tickers, watchlists, and portfolio screens — the live heartbeat of any traded security.

The CMP is determined by the last matched order on the exchange. If a buyer bids Rs 1,500 and a seller asks Rs 1,500, the trade executes at Rs 1,500 and that becomes the CMP. During market hours (9:15 AM - 3:30 PM on NSE), the CMP updates with every trade — for liquid stocks like Reliance or TCS, this means hundreds of updates per second.

Understanding the relationship between CMP and order types is essential. A Market Order executes at or near the CMP immediately. A limit buy order below the CMP joins the bid queue and waits. A limit sell order above the CMP joins the ask queue. The Bid Price is always at or below the CMP, and the Ask Price is always at or above it (except in cases where bid equals ask, triggering immediate execution).

CMP has different implications based on context. For a long-term investor, CMP is relevant only at the time of buying (to get a fair price) and selling. For day traders, CMP fluctuations within the day ARE the opportunity — they trade the Rs 5-20 intraday swings on large-cap stocks. For derivative traders, the CMP of the underlying determines whether their options are in-the-money, at-the-money, or out-of-the-money.

After market close, the "closing price" on NSE is calculated as the weighted average of the last 30 minutes of trading, not the last traded price. This VWAP-based closing price is used for NAV calculations of mutual funds, margin computations, and the next day's opening reference price. The difference between LTP at 3:30 PM and the official closing price can sometimes be Rs 1-5 for a stock, which matters for derivative settlement and portfolio valuation.