To illustrate the FIFO method, let’s take an example:<\/p>\n\n\n\n
Date Symbol Trade Type Qty Rate (\u20b9)
18\/04\/2024 NIFTY25APRFUT Buy 50 22100
19\/04\/2024 NIFTY25APRFUT Buy 50 21900
19\/04\/2024 NIFTY25APRFUT Sell 50 22150<\/p>\n\n\n\n
In this case, the buy trade on 18\/04\/2024 becomes the open quantity on 19\/04\/2024, resulting in an average price of \u20b922100 begining of day on 19\/04\/2024. At End of day on 19\/04\/2024 the P&L will show a booked profit of \u20b92500[(22150-22100)*50], and the open position of 50 will have the average price of \u20b921900 and the unrealised P&L will reflect the difference between the current market price and \u20b921900.<\/p>\n\n\n\n
Remember, the FIFO logic applies to both carried forward (Normal) and intra-day (MIS) trades.<\/p>","protected":false},"excerpt":{"rendered":"
When trading the same contract multiple times, we calculate the buy average for F&O positions using the FIFO (First In, First Out) method, regardless of the product type (MIS or Normal) used to close the positions. This consistency is crucial for accurate P&L calculation when filing income tax returns. To illustrate the FIFO method, let’s […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":11303,"menu_order":6,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/17645"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=17645"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/17645\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11303"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=17645"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=17645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}