Restoration
Novice Trades
:
You have $1100. Buy 11 stocks at $100, then when price increased to $110, your diluted cost will be $100. Now sell 10 stocks so that you are left with 1 stock priced $110 & $1100 cash. That means you had one free stock so diluted cost shows $0.
You have $1100. Buy 11 stocks at $100. When price increased to $200, sell 10. Now you have 1 stock and $2000 so your diluted cost is -$900.
Novice Trades : hi, can I know how do you achieve negative cost?
Restoration Novice Trades : You have $1100. Buy 11 stocks at $100, then when price increased to $110, your diluted cost will be $100. Now sell 10 stocks so that you are left with 1 stock priced $110 & $1100 cash. That means you had one free stock so diluted cost shows $0.
You have $1100. Buy 11 stocks at $100. When price increased to $200, sell 10. Now you have 1 stock and $2000 so your diluted cost is -$900.
Novice Trades Restoration : Ahh I see, thank you!