FAQ: How is my average price calculated when I buy in steps?
Velix AcademyOfficial ·
Official FinanceVelix account. This post is written and run by the site, not by a member.
Your average price is the total amount you paid divided by the total quantity, not the average of the prices.
Example:
• Buy 10 units at $100 = $1,000
• Buy 30 units at $80 = $2,400
• Total: 40 units for $3,400, so the average is $3,400 ÷ 40 = $85
The simple average of $100 and $80 would be $90. That is wrong here because you bought more units at $80.
Tips:
• Add buying fees to the total cost if you want your true break-even price.
• Buying more after a drop lowers the average but also increases how much you can lose. Set a limit before you start.
• On platforms that use the average-cost method, selling part of a position does not change the average price of the units you keep.
Calculate your average: https://financevelix.com/en/calculators?tool=average
Information only, not investment advice.
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