Hi!
When I buy the same share in different time 8.jan-17.94$ and 10.mar-15.79$. How can I sell only specific share? Because I can sell only together. And shares donât show separately but like one share? This is really irritating me. Thank you
What do you mean? You can choose how many shares youâre selling but there is no distinction between shares bought on one date and shares bought on another. You have a total number of shares, not two separate lots of shares.
(17.94+15,79)/2=16,86$
I donât want sell for this price. I just want sell stock which is 15,79. Itâs like one position but I want to have 2 position on the same stock. I hope I explained well. Sorry for my English
Why does it matter which share(s) you sell?
Because of profit. If the share trading at 16.50 I want to sell 15.79 stock and not for 16.86. And it is the same for all shares that I have
But it doesnât matter! Say you were a book seller and had two identical copies of a book but had bought one for $20 and the other for $25. You wouldnât treat them differently and if someone wanted to buy one at $28 you wouldnât worry whether it was a $8 or $3 profit. Essentially youâd average the price to $22.50 and treat it as a $5.50 profit with one book left which you âboughtâ for $22.50.
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All shares from the same company are considered equal. The only difference is you bought it at a different price. Ideally you would buy the share at a price lower than what you value it at. I suggest you watch the 3 investing 101 videos from T212
If we talk about investment not cfd. It makes difference which stock is bought/sold.
In some EU countries for tax purposes they use FIFO , first in first out.
So if you buy stock of MSFT at 135$ on 11 March 2020, and buy one more at 140$ on March 16. When selling for tax purpose you sell the one bought on 11 March as it was bought first, so using FIFO methodology to calculate profits. There is also LIFO, meaning if sold we would sell MSFT from 16th March as last one bought.
T212 uses weighted average, I guess maybe used in UK to calculate taxâŚ
Anyway various EU countries use FIFO tax model.
Granted, there may be tax implications but youâre still not choosing which shares you sold, just treating the sale according to local tax regulations over which you most likely have no control. Even if there was a choice of indicating which shares were sold for tax purposes it wouldnât affect how things are handled on T212.
That depends on broker really. I am not aware how legacy brokers run their business. But when using Revolut, it uses FIFO system, thus position was calculated as if you sold first purchased stock.
From what I was able to google, it is even normal that stock owner can choose which system is used when selling stocks.
Anyway, i would love to have chance to use FIFO on T212 , when averaging down certain positions. To have accurate position with correlation to tax law.