What is “Average Price” in the context of trading?
Average Price refers to the weighted average cost of acquiring a security or contract. It is calculated based on the total cost of multiple trades divided by the total quantity bought or sold. It helps investors understand their effective acquisition cost and determine profits/losses.
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?