Today I bought 2 new ETFs and both of them immediately show £3 or so in the red? Although the ETF price displayed right now is the same as the fill price (although it seems the graphs might just not update too often…but it’s strange the graph wouldn’t update but it says I’m down)
If you have GBP account and no fx transfer, it is due to buy /sell price difference. So if you buy for 10 GBP per share, and now display price is 10 GBP you will be at loss as 10GBP is buy price , sell price is lower(not visible) .
This can be explained by the spread, which if you don’t know, is the difference between the lowest ask (sell) price and highest bid (buy) price.
I couldn’t find it on the mobile app, but on the web app, if you open the graph of any instrument and click the little i button in the top right below your email address you can see the current sell and buy prices live. Depending on the instrument you can see spreads vary between 5c and 25c.
Hope this makes sense.
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25c?
20 character limit
I assume it’s the US version of Pence in the UK.
The gap between the prices can either be rather narrow or wide. It will vary by industry and what they consider the standard. Commodities and Equities will hold different spreads and so these need to be factored in before opening a position if it is profitable and how far a valuation will needs to adjust to turn a profit. Some will differ by just 5c betwen buy and sell, while others will see a gap of 25c or more. Typically the greater the value of the share and the greater the volatility of the share you are looking to acquire, the larger the spread becomes.
P.S.: the 20-character limit is very easy to achieve by asking a simple question and makes far more sense than 3 characters and a question mark. It also makes it much easier for others to understand what has you confused.
e.g. “what do you mean by 5c and 25c?” would have sufficed and thats around 30-31 characters
I assume that’s what you were asking because I can’t tell.
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I just purchased SWLD with a limit at 17.90 and it immediately showed value negative again although the ETF is in GBP and it still showed 17.90 price? Even when it now shows 17.91 price it still shows me in the red
Edit: actually I guess once you buy the portfolio considers the current sell price not the buy price? So it’s the spread
@ukcz That’s because we’re showing the buy/ask price. However, once the order goes through, the position’s result is calculated using the sell/bid price despite the chart showing the buy price.
You’re seeing the difference between the best bid & ask prices from the exchanges themselves. We could just always display the sell price but then you’ll wonder why the execution price is always worse than the chart price.
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Yeah I just realised on the toilet. Thanks for clarifying
I guess it’s better to keep it this way
For a long-term investor, it’s way more relevant to know what the buy price is & it would be just plain wrong if we calculated the position’s result by using the same buy price.
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I’m surprised the spreads are so large even on popular options :o VWRL 72.81 vs 72.64
This isn’t unique to t212, it’s the same on morningstar website…just surprising for me
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@ukcz You’d be surprised how illiquid these ETFs actually are, especially compared to their US counterparts.