How does the buy average is affected when the shares are sold and bought back on the same day?

How does the buy average is affected when the shares are sold and bought back on the same day?

  • The transactions by which the shares are sold and bought back on the same day are considered intraday trades of the shares.
  • Intraday trades are considered separate transactions as the shares do not physically move in or out of the demat account.
  • The buy average remains the same or unaffected by intraday trades.

For example:-

  • If 30 shares of TCS were purchased at ₹1,000 in 2023 and are currently held in the demat account.The current trading price of TCS is ₹ 3,000. If these shares are sold at 3,000 and bought back on the same day for 2,800, the intraday trade will not impact the buy average. The buy average will still remain at same at ₹1,000.

RELATED FACT: -

  • However, trade-to-trade (T2T) stocks are not included in intraday trades, and the buy average of T2T stocks will be the latest buy price.