Why do I see a profit in the positions tab on Kite even though the buy average is higher than the LTP?


#1


#2

This is because of your previously booked profits on the same stock on the same day.

But I agree, as a day trader you would want the profit to be calculated at an individual trade level and not summarised. I usually maintain my own excel to accurately keep a track of my trades.


#3

When you’ve traded intraday in the same scrip multiple times in a trading day, and you open a new position in the same scrip, the buy-average for this will be calculated considering the total quantity traded that day.

Let us understand this with an example -

Let’s say you’re bullish on ITC. You buy 50 quantity of ITC @Rs 280. The stock moved as per your view & you then close the position @Rs 287. You book a profit of Rs 350. Now the price You buy 70 shares of ITC again @Rs 283. Now, the buy average shown in positions will be Rs 281.75*

  • (50x280)+(70x283)/120 = 281.75

Now, let’s say the price goes back down to Rs 280. In this case, the P&L will be a profit of Rs 140* [even though the buy average of Rs 281.75 is greater than the price @Rs 280]

  • 350 - (3x70) = 210

So, the profit or loss shown on Kite under the positions tab is considering all your trades in that stock/contract on that day until that point.

The reason for this is, this will give a clear overview as to what your P&L is for your trades in that particular scrip for that day.


#4

Thanks Kshiteesh. This view is relevant for some cases but Zerodha should give a choice to see the trades in the way user want it. I consider every trade as a separate trade and would not want to see it clubbed.