Earlier, the P&L for Futures positions was calculated based on the previous day’s closing price due to the daily Mark-to-Market (M2M) settlement process. Because of this, the average buy price used to reset every day, which could sometimes make it confusing to track your actual gains or losses from the time you entered the position.

To make this clearer, we, at Groww, have simplified how P&L is displayed.

Going forward, the P&L for your Equity F&O Futures positions will be calculated directly from your original buy price. This means your average buy price will remain constant after you take the position, helping you clearly see your total profit or loss at any point in time.

This update also makes Futures P&L tracking similar to how Options positions are already displayed, making it easier to follow.

What Changes for You?

Your P&L will now be calculated from the original buy price
The average buy price will no longer reset daily
You will be able to track your consolidated profit or loss more clearly

Note: This update only changes how P&L is displayed in the app. It does not impact the daily settlement process, margins, or charges.

Let us understand better with an example:

Suppose you buy 1 NIFTY Futures lot at ₹20,000.

Earlier Method:

Day 1 closing price: ₹20,100
P&L shown: ₹100 profit

Next day, the reference price resets to ₹20,100.

Day 2 price: ₹20,150
P&L shown: ₹50 profit

Even though the total profit from your original trade is ₹150, the system only showed ₹50 because the reference price had changed.

New Method:

Suppose you buy NIFTY Futures at ₹20,000.

Day 1 price: ₹20,100
P&L shown: ₹100 profit
Day 2 price: ₹20,150
P&L shown: ₹150 profit

Your buy price stays ₹20,000, so you can clearly see your total profit or loss from the original trade.

With this change, tracking your Futures positions becomes clearer and more simple. You can now easily see your true profit or loss from the time you entered the trade, without daily resets.

This makes it easier to understand how your position is performing at any moment and track your consolidated gains or losses.

Still got some doubts?

Here are few FAQs that can help you answer your questions.
- Team Groww

FAQs

Why did my average buy price change earlier?
Earlier, the average buy price of your Futures position could change daily due to Mark-to-Market (M2M) settlement. Since profits and losses are settled each day based on the previous day’s closing price, the reference price used to reset daily, which caused the average price shown in the app to change. Now, on Groww, your average buy price will remain the same as your original trade price, making it easier to track your overall profit or loss.
Does this change affect my actual profits or losses?
No. This change only affects how P&L is displayed in the app. The actual settlement process, margins, and charges remain exactly the same. Futures contracts will continue to follow the daily Mark-to-Market settlement as per exchange rules.
Will my average price change after this update?
No. Once you enter a Futures position, the average buy price will remain constant. Your P&L will now always be calculated based on this original trade price.
Does this change affect my existing Futures positions?
The change applies to how P&L is displayed going forward. Your existing positions and settlements remain unchanged, but the way your profit or loss is shown will now be calculated from your original buy price.
Is Futures settlement still done daily?
Yes. Daily Mark-to-Market (M2M) settlement still happens as per exchange rules. This update only changes how your P&L is displayed in the Groww app, not how Futures contracts are settled.