What would be the buy average if T2T stocks are sold from the holdings and bought again on the same day?
The buy average for stocks categorised as Trade to Trade (T2T) is determined strictly on a First In, First Out (FIFO) basis.
If 100 shares of IBVENTURES were purchased for ₹600 on April 1st, 2018, and then sold for ₹700 on August 1st, the same day, and subsequently bought back for ₹690 after the price decreased, the buy average will be calculated based on FIFO method.
1/04/2018 - Buy: ₹600
1/08/2018 - Sell: ₹700
1/08/2018 - Buy: ₹ 690
These stocks are categorized as T2T, so this trade will not be regarded as an intraday trade. Therefore, the updated buy average will be ₹690.