Sorry if this question was already asked but did not manage to find the answer.
In the invest Part, If I:
- buy 1st January 10 $ Tesla with order N° X
- buy 1st February 10 $ Tesla with order N° Y
Want to sell 1st March 15 Tesla, will it sell my 2 first orders at market price and then open a new order at market price for the 5 remaining in the long direction ?
What about if I want to sell only 5 $ Tesla on 1st of March, which of two orders will be closed ?
Thank you in advance for your explanations on how all this work and the side cost of it …
If I got your question well, then yes.
You don’t need to close the full order. You can choose how many shares you want to sell, and you’re also able to sell fractional parts of it.
So on 1st March, you can define how many shares you want to keep or sell.
you only have a single averaged position for each share. so you will sell a portion but hold onto the rest.
Thanks but still difficult for me to visualise. So if I understand it well, there is absolutely no impact, of buying or selling same share in terms of spread cost or impact on unrealized benefits
Thanks this I understand already, what I would like to understand is the impact of buying or selling shares of a same stock in terms of spread or other financial impact
There is spread/dealing costs in every trade you place. Its generally based on your total shares and value of purchase.
In your example, you buy 10 apples, and then 10 more, you then decide you have too many apples, so sell 15, and are left with 5 apples.
Ok but when I will sell 15, it will close my 2 previous orders and open a new one of 5 ? Then I am paying the spread for the new one of 5 ? and this new 5 will be open at current market price when I decide to sell 15 ?
No no no. You do not need to sell in the exact same amounts you buy.
T212 operates in FIFO terms. First In First Out in some countries its beneficial if one hold shares for over year or so before selling. So in your case it will sell the first 15 shares all 10 from first order and 5 of the second one
Thanks mate it s getting clearer. I did not see any allusion about this anywhere in the website
@bendri00 I beg to diasgree. If we are talking about the Invest account (not CFD), then Trading 212 makes no distinction as to which shares are sold. They are all identical apples - ignorant of when they were purchased. The “return” is based on sale price and average purchase price, over all shares held (not FIFO nor LIFO price); this is consistent with the way capital gains are figured for tax in the UK for shares held in a Section 104 holding (ie those not bought and sold on the same day or repurchased within 30 days).
If you are a UK taxpayer you will want to familiarise yourself with this:
See the section “How to identify the shares disposed of”
To add to this T212 has an omnibus account with Interactive Brokers.
So out of the 700,000 or so customers if we each held one share of say TSLA they would have 700,000 shares in their account.
It’s only the database that T212 holds that says who owns what.
In summary you buy 10 and then 10 and you have 20. The average is changed based on what you bought at. You sell 15 and that leaves 5 remaining at that average.
The CFD default mode is hedging where all positions are entirely separate (although you can switch it to aggregation instead like the Invest/ISA)
Thank you for this complete answer. I am not a UK resident so I am not concerned with this Tax Scheme.
My question is linked to my way of trading. I want to manually copy trades from some traders I have access to what they do in real Time.
Let say trader 1 buy some tesla on january, sell them on february, rebuy on march etc…
Trader 2 does also random trades on tesla
If I want to do exactly as each of them does when he does it, I wanted to know what impact it could have based on this average purchase price and if my aggregated returns will be the same of the aggregated traders I am copying or if this average purchase price could have an impact on this strategy
Thanks again for your answer
To maintain such records and enable you to track as you desire, I recommend that in preference to trying to find the statistics on the Trading 212 platform you keep your own diary of trades in a Google sheet.
If you wanted to have multiple positions on the same stock then having more than one broker would be my solution to avoid the average price issue. One for each trader you want to copy.
Traders do this if they get caught holding the bag, but want to play another run can use another broker until ready to exit without causing an average down and tying them in futher.
I can do the tracking on a separate excel sheet, this is not a problem. What I want is to be sure that my aggregated returns on tesla will be same as aggregated returns from separate traders I am copying on their actions on tesla
Ok thanks for your answer do you think with this average price I would not het same results as them aggregated ?
Therefore is it possible to have many accounts in trade212 ? Because I came here for that
If you are copying the other traders exactly then of course your aggregate return must be the same as theirs. How could it be different?
You can only have one account, if you have a partner you could use theirs I guess.
because of this average price thing … that s what confuses my math