When opening and closing positions, the value and cost of the positions will be updated based on the quantity of shares bought and sold and the purchase and sell prices.
●Position Market Value: Is defined as the market price multiplied by the quantity of shares you hold.
●Cost: Refers to the average cost per share of your current position in a stock. It only changes when you buy shares of stock. If you sell, you realize the P/L on the shares sold.
Definition | Formula |
Position Market Value (MV) | Position MV = Market Price * Quantity (Qty) |
Average Cost | Average Cost = ((Previous Average Cost * Previous Qty) + (Purchase Price * Purchase Qty) + Transaction Fees) / Total Qty Total Qty: Previous Qty + Purchase Qty Note: If this is the first transaction, the previous average cost and quantity are 0 |