facebookHow do I calculate my average price? It seems like the stock brokerage is showing a different value. - Seedly

Advertisement

Anonymous

19 Jun 2021

Stocks

How do I calculate my average price? It seems like the stock brokerage is showing a different value.

For eg, I buy 10 stock at $200, then 10 more at $100, my average price is $150. If I sold 5 at $160, then my average price will be $146.67? Then if I decide to buy back 5 at $150, my average price is $147.5?

Is my calculation method wrong? I am confused of why my brokerage showing a different average price from my calculated method.

Discussion (5)

What are your thoughts?

Learn how to style your text

Tan Choong Hwee

19 Jun 2021

Solutions Specialist at Providend

There are different ways to calculate investment cost and P&L of each sales.

What you described is weighted average method, which gives you the average cost of your current holdings taking into account the profit/loss of your sales.

Another method is FIFO method, which is what @Dex described, where the calculation is based on selling what you bought first.

View 2 replies

Hmm, what brokerage are you using? Dont forget to factor in the comm+platform fees if theres any, as that will also affect your average cost. Also, it is likely that you will sell the first 5 shares that you bought first, ie, the ones that you bought at 10@$200, which means you're left with 5@$200 + 10@$100. I could be wrong but that's what i think, cheers.

View 1 replies

Write your thoughts

Advertisement