Average price - am I missing something?

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1

Hi,

How is the average price calculated on T212? I don’t work it out to be the average weighting’s of my live positions.

Example filled:
Buy 3.2 shares @ $5.89
Buy 0.95 shares @ $58.27
Sell 0.95 shares @ $58.48
Buy 1 shares @ $57.99

So I hold 4.2 live shares, I would expect with an average price of $18.28

Yet my investment tab shows an average price of $27.43? Where is this calculated from? Surely that’s not therefore an accurate reflection of my open position, so would also give an incorrect reflection on return?

Thanks

3

3.2 X 5.89 = 18.848
0.95 X 58.27 = 55.35
18.848 + 55.35 = 74.198
74.198 / 4.15 = 17.88
17.88 X 3.2 = 57.21
57.21 + 57.99 = 115.20
115.20 / 4.2 = 27.43 (rounded to 2 points)

1 Like
4

The average price is calculated according to the formula:

((quantity 1 * price 1) + (quantity 2 * price 2) + … (quantity N * price N)) / Quantity N

In the example of @j05hua993t you have to take into account the sale as well.

  • ((3.2 * $5.89) + (0.95 * $58.27)) / 4.15 = $17.88 average price; After the sale of 0.95 units, you will have 3.2 units with an average price of $17.88 (the sell orders do not affect the average price)

((3.2 * $1788) + (1 * $57.99)) / 4.2 = $27.43

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5

Makes sense, thanks all

1 Like