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:
- Buy 1 lot at 20,000
- 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 lot at ₹150
- 1 lot at ₹180
Your average cost = ₹165
If you sell both lots at ₹200, profit = (200 - 165) × lot size × 2
Average Price
- What is “Average Price” in the context of trading?
- How is the average price calculated in the equity (cash) segment?
- Does selling shares affect the average price in the cash segment?
- What happens when I buy / Sell the same stock across different days?
- Is average price applicable in the derivatives (F&O) segment?
- How is the average price for Futures calculated?
- Does square-off affect the average price in F&O?
- How is average price calculated in commodities?
- What happens if I add to a position in the same commodity contract?
- Are positions across different contracts (e.g., Gold Aug vs. Gold Sep) averaged together?
- Why does the average price shown in my trading platform differ from my records?
- Can average price be edited manually?
- What happens to my average price when I purchase stocks in one DP and transfer them to another?
- How should I manage the average price when transferring stocks to a new DP?
- Does transferring stocks from one DP to another affect my P&L calculation?