How to calculate the Average cost in intraday trading?

How to calculate the Average cost in intraday trading?

Average cost arises when you trade in the same scrip multiple times. It is the cost that helps you determine the overall average price of the Buy and Sell on trading multiple times in a particular scrip. Let's take an example; you had bought a share of ‘M Ltd’ at ₹100 and sold the same at ₹105, making a profit of ₹5. Later, you bought the same scrip at ₹110 and sold it at ₹120, making a profit of ₹10. Here, Average Buy Price is (100+110)/2 = 210/2 = ₹105 Average Sell Price is (105+120)/2 = 225/2 = ₹112.50 The Overall Profit made is (112.5 - 105)*2 shares = ₹15 The amount of ₹15 will be shown under the Realised P/L in the dashboard as a total instead of showing separately, making it easier.


    • Related Articles

    • How is the average price calculated for Options positions?

      At FYERS, the average price for Options trades is calculated using a combination of FIFO (First In, First Out) and intraday adjustment logic to maintain accurate tracking of cost and realized profit/loss. How the average price is computed Intraday ...

    • How is the buy average calculated for Equity?

      Buy average of a stock is the average price you have invested per share. Let’s say you traded in the same stock at different prices and on different dates, the scrip will be averaged on a FIFO (First In First Out) basis to make the calculation ...

    • Do I get extra leverage for intraday futures positions?

      No, extra leverage is no longer available for intraday futures trades due to regulatory changes. Earlier, brokers could offer reduced margin requirements for intraday positions compared to overnight ones. This is no longer permitted. Regulatory ...

    • Can I continue my intraday futures positions beyond the day?

      Yes, you can seamlessly convert your intraday futures position into an overnight position at FYERS. This gives you the flexibility to maintain your market view beyond the trading day. Steps to convert an intraday futures position to overnight Go to ...

    • What is the cost of rolling over a position?

      Rolling over a futures position involves closing the current contract and opening a new one, and this action comes with specific costs that traders should account for. Components of rollover cost Price differential: The difference in pricing between ...