The Buy Average helps you understand the average price at which you've acquired shares of a particular stock over time. On FYERS, this value is calculated using the FIFO (First In First Out) method, which is also aligned with tax-reporting norms.
Buy Average is the weighted average cost per share based on your executed delivery trades. It helps you track how much you've invested per unit in a specific stock over time—excluding intraday trades.
FYERS uses FIFO to compute Buy Average. FIFO means the shares bought first are considered to be sold first.
Let’s look at an example from Mr. Mani's FYERS account:
Date | Symbol | Type | Quantity | Rate (₹) |
---|---|---|---|---|
12th September | HDFC Bank | Buy | 10 | 1490 |
15th September | HDFC Bank | Buy | 5 | 1380 |
29th September | HDFC Bank | Sell | 8 | 1540 |
30th September | HDFC Bank | Buy | 10 | 1365 |
On 29th September, Mr. Mani sells 8 shares. Using FIFO, these 8 are adjusted from the earliest buy (i.e., 10 shares bought on 12th September), leaving 2 shares from that lot.
After the sell transaction, the holdings are:
Buy Average = [(2×1490) + (5×1380) + (10×1365)] / (2 + 5 + 10) = ₹1384
Scenario | Explanation |
---|---|
I did intraday trades | These are excluded from Buy Average. Only delivery trades are considered. |
I bought and sold shares on the same day | These are treated as intraday and don’t impact holdings or Buy Average. |
I did BTST trading | FIFO applies even to BTST (Buy Today, Sell Tomorrow) transactions. |
Last updated: 28 Jun 2025