Hi @Shweta11
The buy average for F&O positions is calculated using the FIFO
That’s correct. This is done as all trades must use the FIFO method as mandated by the Income Tax Act.
While you will see 40 rs loss in one lot for now, in your further trades, the buy average drops down further, and your profits will be higher while booking the other lots. The net impact will be same. Only the method of computation of profits is as per FIFO