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Why is there a difference between the LTP and closing price on exchange?

The difference exists because the Last Traded Price (LTP) represents the actual last traded price, while the exchange calculates the closing price. For non-F&O stocks, the exchange calculates the closing price as a weighted average of the last 30 minutes of trading (3:00 PM to 3:30 PM). For F&O segment stocks (Phase 1), the closing price is determined during the Closing Auction Session (CAS) based on matching order books from 3:15 PM to 3:30 PM.

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