You can see profit in the positions tab on Kite even when your buy average is higher than the Last Traded Price (LTP). This happens when you execute multiple trades in the same stock within the trading day and open a new position for that instrument. Kite calculates your buy average by considering all trades you made in that stock during the trading day, not just your current position.
Example scenario
Here's how this works in practice:
- You initially buy 50 shares of a stock at ₹280 and later sell them at ₹287, earning a profit of ₹350.
- You then buy 70 shares of the same stock at ₹283.
- Kite calculates your buy average by considering your total quantity traded: Buy average = ((50 × ₹280) + (70 × ₹283)) ÷ (50 + 70) = ₹281.60
- If the stock price later drops to ₹280, your displayed profit or loss (P&L) will show a profit of ₹140, even though your buy average of ₹281.60 is higher than the current price.
Why this happens
This calculation method considers all trades you made in that particular stock for the trading day. The positions tab provides you with an overview of your P&L for all those trades combined, which explains why you can see profit even when your buy average appears higher than the current market price.