What would be the buy average if T2T stocks are sold from the holdings and bought again on the same day?
For Trade-to-Trade (T2T) stocks, each trade is settled independently—there’s no intraday netting or squaring off.
If you sell from your holdings and buy the same stock again on the same day, these are treated as two separate transactions, each with its own settlement cycle.
- The buy average will be calculated only on the new purchase made that day, and it will not be adjusted for the earlier holding that was sold.
- The FIFO (First In, First Out) method applies to match buy and sell transactions when calculating gains/losses for tax purposes, but it doesn't affect the average price of your new holding.
