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How to Set Calculation Method (FIFO/LIFO/Weighted Average)

Overview​

Choose how trades are matched for P&L calculation.

Calculation Methods​

FIFO (First In First Out)​

  • First buy matched with first sell
  • Recommended for most traders
  • Tax-friendly in India
  • Standard method

LIFO (Last In First Out)​

  • Last buy matched with first sell
  • For specific strategies
  • Different tax treatment

Weighted Average​

  • Average price calculation
  • Good for large positions
  • Delivery holdings

Steps​

1. Go to Account Settings​

Navigate to Settings > Accounts

2. Edit Account​

Click three dots > "Edit" on account

3. Change Calculation Method​

Select from dropdown:

  • FIFO
  • LIFO
  • Weighted Average

4. Save Changes​

Click "Save" - recalculates all P&L

Success!​

Calculation method updated!

When to Use Each​

FIFO​

✅ Day trading
✅ Default choice
✅ Tax compliance
✅ Simple tracking

LIFO​

✅ Specific trading strategies
✅ Recent cost basis preferred
✅ Advanced traders

Weighted Average​

✅ Delivery holdings
✅ Large positions
✅ Investment accounts

Impact​

⚠️ Changes P&L calculations
⚠️ Affects all historical trades
⚠️ Tax implications
⚠️ Report changes

Quick Tips​

  • FIFO recommended for most
  • Set once per account
  • Affects P&L calculations
  • Consult CA for tax

Next Steps​

Troubleshooting​

P&L changed? Normal when method changed
Which to use? FIFO for most
Need help? Contact support@tradelyser.com

Common mistakes​

  • Switching FIFO to LIFO mid-quarter without exporting reports for your CA first.
  • Comparing TradeLyser P&L to broker console when methods differ and assuming a sync bug.
  • Changing method per account inconsistently when reviewing consolidated equity curve views.
  • Expecting historical tax filings to match after retroactive method changes without reconciliation.

Pick one method per account for the financial year, document it in your journal, and re-run P&L analysis after any change.

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