# Average price - am I missing something?

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:
Sell 0.95 shares @ \$58.48

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

3.2 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

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

2 Likes

Makes sense, thanks all

1 Like