In the stock market, each stock has more than one price in each session. It is useful to know what these prices are and how they are formed.
Let’s tell you about these prices respectively:
-Weighted Average Price:
The different prices of the stocks sold in the previous session are multiplied by the number of stocks sold and then added together. The resulting figure is divided by the total number of stocks sold. This gives the weighted average trading price of the stock on that day.
- Floor Price:
This is the Weighted Average Price of a particular stock minus 5 percent of the previous session’s Weighted Average Price.
In the next session, trading cannot be made at a price below the Floor Price.
-Top Price:
It is the figure found by adding 5 percent to the Weighted Average Price of the previous session for a certain stock. In the next session, trading cannot be made at a price above the Ceiling Price.
- Closing Price:
The price at which a particular security was last traded in the previous session. In that session, the main trades may have been made at other prices. Therefore, the closing price does not reflect the actual situation in the previous session.
- Lowest/Highest Price:
The lowest and highest prices at which a particular stock is traded in a given session.
The decision to buy and sell stocks on the stock exchange you need to monitor all of these prices.
The lowest price of the next session is the lowest price of the previous session. announced as the average price of the Stock in the session is above the price, it is bullish for that stock. trend.
If the closing price is close to the highest price, that share The stock enters the next session in an upward trend
means.