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How to calculate buy average when you sell and buy T2T stocks on the same day?

Your new buy average will be the price of your latest purchase. T2T stocks use the First In, First Out (FIFO) method, where your oldest holdings get sold first and new purchases create a fresh buy average.

Example calculation

Consider this trading scenario with IBVENTURES shares:

Initial position:

  • 1 April 2018: You buy 100 shares at ₹600

Same day trading on 1 August 2018:

  • You sell 100 shares at ₹700
  • Price drops, so you buy 100 shares again at ₹690

Result: Your new buy average becomes ₹690 (the price of your latest purchase).

Since T2T stocks cannot be traded intraday, your transactions count as separate delivery trades, not intraday trades.

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