Why does the Last traded price(LTP) for F&O contracts change in the Kite position page before the market opens?
The Last traded price (LTP) value for F&O contracts on the Kite position page changes to the settlement price before the market opens. This occurs because Zerodha updates the settlement price in place of LTP once they receive the BHAVCOPY from NSE, typically between 6:30 AM and 7:00 AM the following day.
The LTP (Last Traded Price) reflects the most recent actual transaction price, while the closing price on the NSE (National Stock Exchange) is determined by calculating the weighted average of prices during the final 30 minutes of trading. In the case of liquid contracts, the closing price and settlement price are identical. However, in instances where there have been no trades within the last 30 minutes for illiquid contracts, the exchange presents a theoretical settlement price. This theoretical settlement price is shown on the Kite position page instead of the LTP.