CMP stands for "Current Market Price" in the stock market. It is the current price at which a stock is being traded in the market. The price of a stock changes almost constantly during the life of its existence, perhaps even every single second. Even while markets are closed, public views and events have an impact on the price of a stock, which is reflected by the stock opening with a break/jump upwards, or downwards. The CMP is the most recent point addition to the graph of a stocks price, where it is priced at that moment in time. Therefore, CMP in the stock market represents the current market price of a stock.

The CMP of a stock is important to investors or traders, as it can tell them what the price of a stock is at that particular moment. It can be used to make an educated guess about what the CMP will be in the future, coupled with computing the price of a stock a few moments before, alongside a fundamental and technical analysis. CMP helps in assessing the market value of a company and serves as the benchmark for investors while buying or selling shares.

It is important to note that CMP should not be confused with LTP (Last Traded Price). LTP is the price at which the last trade has occurred for a stock. Although the LTP of a stock affects the CMP, when the volume traded is high, it is the actual price at which the last trade was carried out. Whereas the CMP of a stock is usually close to its LTP and is the currently available price at which trade can occur.