Sir,
I have been trying to close this issue for forever. My only problem is that I am really bad at indexing my own past responses.
So for sake of your convenience, the turnover is a very simple concept.
For Intraday trades, the turnover is sum of absolute difference of sell and buy side of each transaction.
So if you buy Reliance at Rs 500 and Sell at Rs 495, the turnover is Rs 5.
The same applies if you buy at 500 and sell at 505.
The total turnover of the above two transactions would be Rs 10 and loss will be Zero.
The same rule applies for Futures too.
So if you buy Nifty one lot at Rs 500 and Sell at Rs 495, the turnover is Rs 5.
The same applies if you buy at 500 and sell at 505.
The total turnover of the above two transactions would be Rs 10 and loss will be Zero.
For Options, it is a bit tricky. Here you have to add the sum of absolute difference of sell and buy side of each contract and the sell side.
So if you buy an option at 10 and sell at 11, then the turnover is Rs 1 plus Rs 11 ie Rs 12
However, if you buy at 10 but sell at 9, then the turnover is Rs 1 plus Rs 9 ie Rs 10
The turnover here will be Rs 22 and loss will be Zero.
Key thing to note is that ideally the turnover should be computed at each transaction level and not on the gross levels. While Zerodha follows the above principle, it does it at gross levels. For e.g.: So if you go by the above example of reliance, the turnover should be 10. However, Zerodha will most probably give you turnover of Rs Zero as they will count Buy as 1000 and sell as 1000.