Calculation of P/L & Cost

Calculation of P/L & Cost

P/L: it represents the profit and loss of your current position

Calculation formula: P/L (long position) = (current market price - cost) * qty

P/L (selling short) = (cost - current market price) * qty

Cost: Currently, the system supports two cost calculations, namely diluted cost and average price. The default is diluted cost, and if you need to change it, you can go to Portfolio > More > Portfolio > Cost calculation.

choose it in Assets Homepage-All Functions-Asset Settings-Cost Calculation Method.

Diluted cost:

It represents your secure price during the holding period from opening to closing. That is, each time you increase or reduce your position, it may increase or reduce the cost price. It calculates the P/L of each transaction during the holding period (excluding commission and fees, etc.), considering both buying and selling changes.At the same time, the dividends of corporate actions during the period of holding the position may also increase or decrease the cost price.

Calculation formula: diluted cost = (total buying amount during the holding period - total selling amount during the holding period) / current holding amount.

Note: For same-day trades in the same direction, like closing and reopening a long position, the system treats it as a 'T' transaction, calculating the average cost over the holding period. But for trades in different directions, like shorting, closing, then going long, the cost resets upon closing, and recalculation starts with a new position.

Average price:

Average price: it represents the cost of the corresponding position and only considers the situation of increasing the position regardless of reducing the position. The reduced positions have been turned into the realization of P/L.

Calculation formula: average price = (average cost price before purchase × quantity + price of this purchase × quantity) ÷ holding quantity after purchase

Note: The calculation will start again when the position is reopened.

Summarize: The cost price is provided for reference only, with asset details subject to the information in your statement. In the event of corporate actions or stock conversions, the calculation of cost price and profit/loss may not be precise, but this will not affect the overall value of your assets.