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Realized P/L

Average Cost

If you choose the average cost method to calculate your total profit or loss (P/L), your P/L will be divided into two types: Unrealized P/L and Realized P/L, and calculated as:
P/L
  • P/L = Realized P/L + Unrealized P/L
Unrealized P/L
  • Unrealized P/L = (Current Price – Cost Per Share) * Quantity Held
Realized P/L*
  • For long positions: Realized P/L = Previous Realized P/L + (Current Trade Sale Proceeds – Average Cost * Quantity Sold)
  • For short positions: Realized P/L = Previous Realized P/L + (Average Cost * Quantity Purchased – Current Trade Purchase Cost)
*Note: Realized P/L refers to the profits or losses that have been locked in through transactions such as selling securities or transferring positions. It shows the total profit or loss you've accumulated from holding a position up to now.

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