No, this won’t work, buy avg is still based on FIFO.
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If you buy 50 share @ 100 and then buy 50 shares @ 110
Average price for 100 share will be 105.
Now if you sell shares ( which you bought at 110 ) at 108 you book 3 rupees profit right ?
No, if you sell all the 100 shares you’ve purchased, 50 shares (bought at 100) will be in profit of Rs. 8, while 50 shares (bought at 110) will be in Rs. 2 loss. You can read this article to know how buy average is calculated.
I read FIFO article after I post my last comment.
I asked you if I sell 50 shares. ( Now I know first shares will be sold). So I will book 8 rupees profit.
What will be the price of remaining 50 ?
Do I have to sell those above 110 ? To book profit ?
The buy average of 50 shares will change to 110 (this is the price you bought them at). To earn profit you’ll have to sell these shares > 110.