Who it's for — Beginners who confuse market price with an asset's "intrinsic value". In trading, price is an operational coordinate: the last recorded agreement.
In trading, price almost always means Last Traded Price (LTP) — the level of the last completed transaction between a buyer and a seller. It feeds charts, P&L and risk calculations.
In simple terms — Price does not say whether an asset is "good" or "cheap". It says: "The last trade happened at this level."
Price and value
In simple terms — A stock at $10 is not "cheap" vs $50 two years ago: it is the current equilibrium between supply and demand.
| Wrong read | Operational read |
|---|---|
| Price reflects "true" asset value | Price reflects momentary market equilibrium |
| It "must" return to a past level | Price has no memory — it follows supply and demand |
| On-screen number = my fill price | LTP is history; execution depends on bid/ask and book |
Example — Chart at $100, market buy: fill may be $100.08 if available asks are higher. LTP was only a historical reference.
Operational use
Traders use price to answer three questions:
- Where are we? — Context (trend, range, level).
- How did we get here? — Speed, volume, structure.
- Where is my idea invalid? — Stop loss level.
Summary
Bronze path — Module: What is a market. Index: Bronze path.