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:
- Buy 1 – 60 Qty @ ₹638.55 (first trade)
- Buy 2 – 235 Qty @ ₹634.55 (second trade)
- Sell 1 – 11 Qty → matched with Buy 1
- 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:
- Buy 1 – 60 Qty @ ₹638.55 (first trade)
- Buy 2 – 235 Qty @ ₹634.55 (second trade)
- Sell 1 – 11 Qty → matched with Buy 2 (lower price = more profit)
- 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
Below is a tabular representation of profit as well as loss calculation based on New and Old logic
Profit @ Sell Price = ₹ 650
| Logic | Sell Qty | Sell Price | Buy Price | Profit/Loss |
|---|---|---|---|---|
New | 77 | 650 | 634.55 | 1189.65 |
Old | 60 | 650 | 638.55 | 949.65 |
17 | 650 | 634.55 |
Loss @ Sell Price = ₹ 620
| Logic | Sell Qty | Sell Price | Buy Price | Profit/Loss |
|---|---|---|---|---|
New | 77 | 620 | 634.55 | (1120.35) |
Old | 60 | 620 | 638.55 | (1360.35) |
17 | 620 | 634.55 |
Thus, in both the above cases, as per the revised logic, the profit amount is higher or loss amount is lower, resulting in more funds available for withdrawal or onwards utilization.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.
