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

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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)

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Tan Choong Hwee

19 Jun 2021

Investor/Trader at Home

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.

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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.

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