Re:Positions, Profit and Loss
by tacostakohashi on Sunday August 01, 2021 @05:55PM
(#28030465)
Let's say you buy three shares at prices of $5, $5 and $10. You paid a total of $20 for the three shares.
Now you sell 2 of them for $20 each ($40 in total), and have 1 share remaining. You want to calculate realized P&L using the average cost method. The average cost per share is $20/3, so the P&L is $40-(20/3).
Now you sell 2 of them for $20 each ($40 in total), and have 1 share remaining. You want to calculate realized P&L using the average cost method. The average cost per share is $20/3, so the P&L is $40-(20/3).