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