FNO Contract note

Hi Team,

I hold a overnight future position for example SBIN(3000 lot) which is purchased at a price @Rs200.

Previous day Closing price @202.

Today I sold the same @ Rs205 and again bought at @ Rs 207…

Considering FIFO I made a intraday loss of Rs2 i.e 6000 & M2M settlement for carryforward position made a profit of Rs.10000.

My quarry was my contract note is showing Buy average of last bought price i.e 207. How is this Buy average calculated. Please explain

Buy average for F&O is calculated based on proper FIFO (First In First Out) method, you can read this for detailed information.