Net change

Key takeaways
* Net change is the difference between a security’s closing price in one trading period and the next.
* It can be expressed as an absolute amount (currency) and as a percentage; both are commonly reported.
* Net change underlies line charts and certain technical charting methods (for example, point-and-figure charts) and is used in many technical indicators.
* Charting platforms often adjust historical prices for dividends and splits, which can affect apparent net change in past periods.

What net change means

Net change = Current closing price − Prior closing price

It measures how much a security’s price moved between two consecutive closes. Net change can be positive (price rose), negative (price fell), or zero (no change). While financial media usually quote net change in currency (e.g., dollars), it can be calculated in any denomination appropriate to the asset.

Percentage change is often shown alongside net change to indicate the movement’s size relative to the price:
Percentage change (%) = (Net change ÷ Prior closing price) × 100

Example
* Prior close: $10.00
* Current close: $10.25
* Net change: $0.25
* Percentage change: (0.25 ÷ 10.00) × 100 = 2.5%

Reading quotes

Markets and platforms typically display three values together: last price, net change, and percentage change. For example:
163.65 −0.45 (−0.27%)
This reads as: last price 163.65, net change −0.45, percentage change −0.27%.

Real-time electronic quotes are preferred by traders because printed or delayed sources may show outdated net-change values. Quotes compiled from multiple exchanges can also vary slightly.

Adjustments and historical data

Charting platforms commonly adjust historical prices to account for corporate actions such as stock splits and dividend distributions. These adjustments help preserve trend continuity but can make historical prices look lower or higher than the actual traded values at the time.

Example: after a 2-for-1 split, a security that closed at $60.00 will show a $30.00 adjusted close the next session; the net change immediately after the split may show as $0.00 because the series was adjusted.

Because data can occasionally be reported or carried forward incorrectly, always verify critical historical net-change values when performing research or backtesting.

Net change in charting and analysis

• Line charts: Most simple price charts plot closing prices over time; net change between sessions defines the line’s vertical movement.
• Point-and-figure charts: These charts ignore time and volume and focus on filtered price movements (net change thresholds). Columns of Xs indicate net uptrends; Os indicate net downtrends. Point-and-figure is useful for highlighting directional patterns and setting price targets based strictly on price movement.
• Technical indicators: Many indicators (momentum, rate-of-change, etc.) incorporate net change or percentage change to measure trend strength or detect trading opportunities.

Practical tips

• Always check both absolute and percentage net change—small dollar moves can be large percentage moves in low-priced securities and vice versa.
• Use real-time data for active trading; rely on adjusted historical data for long-term charting but verify adjustments when necessary.
• Remember that net change is a single-period measure; combine it with volume, trend context, and other indicators for better decision-making.

Summary

Net change is a simple but essential metric: the change in a security’s closing price from one session to the next. Reported as an amount and as a percentage, it feeds into charts and indicators and helps investors quickly gauge daily price movement. Be mindful of corporate-action adjustments and data accuracy when using net change for analysis.