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.


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