Is average price applicable in the derivatives (F&O) segment?

Average price in case of FNO contract is calculated by adjusting profit and loss in the Contract.


📘 Example – Futures:


You buy NIFTY Futures in two lots:

  1. Buy 1 lot at 20,000
  2. Buy 1 lot at 20,100


👉 Your average buy price becomes:(20,000 + 20,100) / 2 = 20,050


Now if you sell both lots at 20,200, your P&L is calculated as:(20,200 - 20,050) × lot size × 2


📘 Example – Options:


Let’s say you buy 2 lots of Bank NIFTY 45000 CE:

  1. 1 lot at ₹150
  2. 1 lot at ₹180


Your average cost = ₹165


If you sell both lots at ₹200, profit = (200 - 165) × lot size × 2

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