The ATP Full Form in Share Market is Average Traded Price. This is the average price for shares in a company for a certain period of time. it’s not a straightforward average, where you add prices and divide by the total. ATP on the market for shares offers a deeper understanding as well as more valuable details.
Understanding ATP in the Share Market
ATP is an important indicator for understanding what’s happening in the stock market. It will reveal the average value of stocks once the trader is aware of how many shares are traded and at what price they are traded. Based on the requirements of investor, the average price can be determined on a weekly, daily or monthly and even on a quarterly basis. This allows investors to determine at what prices buyers buy the stock and then sell it, which is crucial in determining which stocks should be purchased or traded.
How to Calculate ATP
To determine the ATP for a particular share, you take a look at the cost for each shares multiplied by the amount of many shares of it are traded, and then divide that by the total amount of shares that were traded during the period of time. This method of calculation is based on the number of transactions were executed, giving more clarity on the value of the stock worth in the marketplace. ATP is among the most powerful tools investors are equipped with. It gives directions to the market and also a percentage of shares volume.
