Understanding the New Intraday Trade Settlement Logic (Effective 1st April 2025)

From 1st April, intraday trade settlement has moved away from the old FIFO (First In First Out) method to a profit maximization approach.

This update helps you get the highest possible intraday profit available instantly for withdrawal or for taking additional positions using those profits. However, it also changes how your trades are matched and which ones are carried forward as delivery.

Here’s a simple explanation of what’s changed:

Earlier Method – FIFO (Before 1st April)

How it worked:

• Trades were matched in the exact order you placed them.
• The first Buy you made was matched with the first Sell, and so on.
• Any Buy quantity not matched with a Sell was carried forward for delivery.
• Delivery price was based on the average price of the remaining unmatched buys.

Example:

1. Buy 1 – 60 Qty @ ₹638.55 (first trade)
2. Buy 2 – 235 Qty @ ₹634.55 (second trade)
3. Sell 1 – 11 Qty → matched with Buy 1
4. Sell 2 – 66 Qty → matched with remaining 49 Qty of Buy 1 + 17 Qty of Buy 2 Delivery carried forward: 218 Qty @ ₹634.55

New Method – Profit Maximized Settlement (From 1st April)

How it works now:

• Trades are matched to maximize your intraday profit first / (minimize your intraday loss), not just by time sequence.
• Lower price buys are sold first, so you lock in higher profit / (minimum loss) instantly.
• Higher price buys (which would reduce profit if sold first) are carried forward for delivery.
• This means more of your profit is available immediately for withdrawal or reuse.

Example:

1. Buy 1 – 60 Qty @ ₹638.55 (first trade)
2. Buy 2 – 235 Qty @ ₹634.55 (second trade)
3. Sell 1 – 11 Qty → matched with Buy 2 (lower price = more profit)
4. Sell 2 – 66 Qty → matched with Buy 2 again Delivery carried forward: 158 Qty of Buy 2 @ ₹634.55 + 60 Qty of Buy 1 @ ₹638.55

Average delivery price: 218 Qty @ ₹635.65