Share prices calculation

Hey everyone! Hope youâ€™re well in this trying times!

A quick basic question. Howâ€™s the difference in price for the same stocks calculated in the real-time P&L statement? i.e. I buy 10 stock of X company for \$100, later thereâ€™s a price drop and buy 10 more for \$50 - the app shows that I have 20 stocks of a value of \$1500 but how is profit and losses calculated if it goes the price of the stocks goes to \$75? itâ€™s a loss of \$25 on the first set and a gain on the second? Same thing if I sell them, those 10 stocks are valued with the \$25 loss or gain? Iâ€™m a bit confused but this (obviously)

Thank you!

If you put those two purchases together you bought 20 shares at an average price of \$75. 20*75=\$1500. At the \$50 share price your shares lost a value of \$500. But once it goes to \$75 you have broke. Even again, and your are back to the \$1500 you invested. You treat all the shares together, and not in different sets. If you sold 10 of the stocks at that price you wouldnâ€™t have gained or lost any money, you would have taken \$750 out and left \$750 in. Hope this helps. Iâ€™ve read in a previous thread that some European countries treat the shares in sets as you said for tax, so Iâ€™m not sure how that works, but on trading 212 and here in the UK itâ€™s all treated as an average

Gotcha! Makes totally sense, so I guess the P&L indicator in the app adjusts itself based on the average price of the stocks combined whenever you buy new ones right? Thanks a lot man, really cleared things up

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