How-to P&L Positions Short

How to fix the Positions tab showing profit when buy avg is greater than LTP on Kite

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A user observes a Kite Positions tab row where the “Avg” price is higher than the “LTP” but the “P&L” column shows a positive number. Intuitively, “I bought at a higher price than current, how can I be in profit?” The answer is: this is a short position, and the math works the other way.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with Zerodha.

Step-by-step procedure

Five steps per the procedure infobox. The notes below explain the math.

Short position math

For a long position (positive Qty): P&L = (LTP - Avg open) x Qty.

  • LTP > Avg open: positive P&L (price went up after you bought).
  • LTP < Avg open: negative P&L (price went down).

For a short position (negative Qty): P&L = (Avg open - LTP) x abs(Qty).

  • LTP < Avg open: positive P&L (price went down after you sold).
  • LTP > Avg open: negative P&L (price went up).

The user’s confusion arises because they read “Avg open” as the price they paid, expecting a price-fall to mean loss. For a short, the price-fall is profit.

Quick verification

Check the Qty column. A negative value (e.g., -100, -50) is a short position.

QtyAvg openLTPP&L signInterpretation
+1002,9002,950PositiveLong; price rose; profit
+1002,9002,850NegativeLong; price fell; loss
-1002,9002,950NegativeShort; price rose; loss
-1002,9002,850PositiveShort; price fell; profit

Option seller specifically

For an option seller (premium received at avg open):

  • LTP = current option premium.
  • Avg open = premium received when you sold the option.
  • P&L = (Avg open - LTP) x abs(Qty).

When option premium decays (time decay or move against your view), LTP falls below Avg open, and P&L is positive. This is the “theta-positive” outcome that option sellers target.

When the Qty column is positive but the math still seems off

If Qty is positive (long position) and Avg open > LTP, the P&L should be negative. If Kite shows positive, possible causes:

  • Display misalignment (column shift). See How to fix Order book showing dates instead of quantity .
  • You are looking at the wrong column. The “Net chg” or “Day chg” column may have a different sign convention.
  • Corporate action adjustment. A bonus or split has reduced the avg open below LTP in real terms.
  • Charges adjustment. Realised P&L (closed positions) may be different from gross MTM.

If none explain it, take a screenshot and submit a Console ticket.

F&O short positions are common

Many active traders run short F&O positions:

  • Short Nifty futures expecting a fall.
  • Short calls expecting time decay or a fall.
  • Short puts expecting time decay or a rise.

For each, the negative Qty + positive P&L when LTP < Avg open is the standard, profitable outcome.

See also

External references

References

  1. SEBI, Short selling framework, sebi.gov.in.
  2. Zerodha Support, Positions tab P&L computation, support.zerodha.com.
  3. NSE India, F&O segment and short positions, nseindia.com.

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