Lets say stock ABC is trading at Rs 100/-, (CMP) and bearish.
I go short and when the price reaches 90/-, i decide to square off and get profit of Rs 10/-
Booked P/L = Rs 10.
Now, lets say the stock price retraces up, and reaches 95/- (CMP), and starts going down again, and i go short again at 95/- now.
When i go short again at a higher CMP, than the previous squared-off value, does it change my booked P/L?
(Asking this, as i have seen the booked P/L comes to the current MTM, when i re-take trade). Like the booked P/L of Rs +10/- becomes current MTM at Rs +5/- (100 - 95)
Now, suppose the stock from CMP 95/- goes to suppose 85/-. after 30 mins and i re-square off.
Is my booked P/L equals 10 + 10 = 20 for two trades? OR is it just Rs 15 (initial 100/- to final 85 since the overall initial and final prices are taken).
If (2) is the answer, then why is it so? Because the previous transaction is already squared-off.