The average price of your holdings is calculated based on the First In, First Out (FIFO) method. It reflects the weighted average cost of shares in your portfolio and excludes intraday trades.
- FIFO Method: When you sell shares, the oldest shares (purchased first) are removed first. The average price is recalculated based on the remaining shares.
- Intraday Exclusion: If you sell and rebuy the same shares within the same day, it counts as an intraday trade. Intraday trades do not affect the buy average of your holdings.
Example:
Buy Transactions:
- May 5: 100 shares at ₹50/share.
- May 10: 50 shares at ₹60/share.
Sell Transaction:
Calculation:
Using FIFO, the first 50 shares bought at ₹50 are removed.
Remaining shares: 50 at ₹50 and 50 at ₹60.
Average Price = (50×₹50)+(50×₹60) ÷ (50 + 50) = ₹55/share.
Note: Intraday profits or losses are calculated separately and do not impact the average price.
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