Calculation of P/L & Cost
P/L
It represents the profit and loss of your current position.
Calculation formula(s):
- 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 - Diluted Cost and Average Price. It is set to Diluted Cost by default, and can be changed in the app via 2 methods:
- Portfolio → More → Portfolio Settings → Cost Calculation
- Me → More Settings → Portfolio → Cost Calculation
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.
Note: The system will regard it as an arbitrage if you liquidate and open a position within the same day, and the system will continue to use the data of the holding period to calculate the diluted cost.
Calculation formula: Diluted cost = (Total buying amount during the holding period - Total selling amount during the holding period) / Current holding amount
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