Hello, hope you are doing well =) I have a stock that I am purchased back in 2019 at the cost of $10 (1 unit). Then the price currently in 2021 is $7 (per unit). I purchased the 2nd unit $7 via intraday, my average price should be around $8.50 (2 units). Then the price went up to around $7.50 on the day itself and I decided to sell it. So, my profit would be $0.50 for my 2nd unit. Though initially in 2019 I had $10 cost, and currently the portfolio system shows that my average is $8.50 and holding 1 unit. Does this mean that I had lost $1.00? Really unsure about such situation and whether I should contact my broker to help me re-tally the average? Thank you so much for your thoughts =)
Your average cost will not change unless you buy more shares. If you sell some shares, you still have the same average cost of your position. You still made money on your 2nd purchase, but that doesn't change your average price.
