Finding Average Value after buying and selling unequal quantity/lots in Futures and Options


I have query regarding how averageing is done on open position when I place opposite bets of my open position.

Suppose-I am trading USD/INR Futures. I buy 1 lot at at Avg price-79.62,after few days price goes down to 79.33. Facing loss of 300 Rs as my direction/view got wrong.


At price 79.33,I wanted to exit current open postion with loss of 300 Rs and open short position.So I decided to Sell 2 lots of USD/INR Futures of Same Expiry,which result in exiting my earlier long position and created 1 short open position in the market.

I want to know at which price my one position will be open and how to calculate price of my open position.


If you square off buy contract and open sell position , then you will see avg price of both square off position and sell position , its simple mean formula as applied in mathematics .

Suppose it square off at 79.33 and sell position was open at 79.3290, then it will reflect as 79.3295 as average price. It will not compute as 79.62.

Ok,So it will take average price of short positions only(for current ex) and show that price in open position.


But in next day as position is nrml it will show trade price actual position price , not of square off position means it will show 79.3290 not 79.3295 as average . All stock broker in india shows average price which is facility for trader to handle situation. But in reality some position will be exited out in loss and some position will profitable but due to averaging it shows profit if you get out above average price on buy side trade . You can check on contract note if you have one where you have average the price.