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The cost of the position - Position Data Fields

Futu adopts a diluted cost price (not including transaction costs for now) , the cost price is recalculated when buying or selling stocks. The cost price of the remaining positions will be diluted or increase after selling stocks, or even a negative cost price will occur.

Calculation formula:  (total buy amount - total sell amount) of the holding period/ Number of positions

Applicable to: positions in all markets

Example 1: Sell part of the position at a profit, and the cost of the remaining positions becomes lower

Date

Operation

Calculation process

Diluted cost price

March 18, 2020

Buy and open 100 shares at $330 per share

(330*100)/100

330.00

April 21, 2020

Continue to buy 100 shares, $400 per   share

(330*100+400*100)/200

365.00

June 24, 2020

Sell 100 shares, $500 /share

(330*100+400*100-500*100)/100

230.00


Example 2: Sell part of the position at a loss, and the cost of the remaining position becomes higher

Date

Operation

Calculation process

Diluted cost price

July 9, 2020

Buy and open 100 shares, $550 per share

(550*100)/100

550.00

July 21, 2020

Continue to buy 100 shares, $560 / share

(550*100+560*100)/200

555.00

August 24, 2020

Sell 100 shares, $540 /share

(550*100+560*100-540*100)/100

570.00


Example 3
: When the transaction amount of the selling part exceeds the accumulated buying amount, the cost price of the remaining holding becomes negative

Date

Operation

Calculation process

Diluted cost price

March 23, 2020

Buy and open 1000 shares at $2.3 per   share

(2.3*1000)/1000

2.30

May 22, 2020

Continue to buy 5000 shares, $3.3 per   share

(2.3*1000+3.3*5000)/6000

3.13

July 10, 2020

Sell 2500 shares, $15 /share

(2.3*1000+3.3*5000-15*2500)/3500

-5.34

August 11, 2020

Continue to buy 2500 shares, $13 per   share

(2.3*1000+3.3*5000+13*2500-15*2500)/6000

2.30


When the cost price is negative, it means that you have recovered the full cost of investment, so the market value of the remaining position can be considered as profit