How to calculate the Average cost in intraday trading?
The Average cost is useful when you trade the same stock multiple times. It helps you determine the overall average price of your buy and sell positions, allowing you to assess your profit or loss more accurately.
Example:
- You buy a share of ‘M Ltd’ at ₹100 and sell it at ₹105. You make a profit of ₹5.
- Later, you buy the same scrip at ₹110 and sell it at ₹120. You make a profit of ₹10.
Calculation:
- Average Buy Price = (100 + 110) / 2 = ₹210 / 2 = ₹105
- Average Sell Price = (105 + 120) / 2 = ₹225 / 2 = ₹112.50
Overall Profit:
- Profit = (112.50 - 105) × 2 shares = ₹15
- This ₹15 will be shown under the Realised P/L in the dashboard as a total, making it easier to track.
Average cost helps you track the overall performance of intraday positions when you buy and sell the same stock multiple times. Use it to calculate your cumulative profit or loss.
What if...
| Scenario | Outcome |
|---|
| You trade the same stock multiple times | The average buy and sell prices will be calculated for your entire trade history |
| You don’t calculate the average cost | It can be difficult to determine your overall profit or loss from individual trades |
Last updated: 27 Jun 2025
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?
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. ...
How Does Intraday Futures Trading Work in FYERS?
Intraday futures trading at FYERS lets you open and close futures positions within the same trading day. Leverage depends on exchange-prescribed margins for each contract, and under peak margin rules, intraday and overnight margin requirements are ...
What Happens If My Intraday Short Position or Delivery Obligation Isn’t Settled?
If you sell shares without holding them (short sell) and don’t square off before market close, it may result in short delivery. At FYERS, we handle such settlements strictly as per exchange regulations. The exchange may conduct an auction to source ...
How often is Mark to Market (MTM) assessed in trading?
In trading, MTM (Mark to Market) is typically calculated daily. At the end of each trading day, MTM helps determine the day's profits or losses on open positions. This regular assessment allows traders to effectively monitor and manage their ...