Hello all,

I want to ask, if i sell today and buy back today but at a lower price.. how does the averaging works ah?

just say 2k units at sold @ 6.83

and bought back 2k units @ 6.65

What is the calculations here? and the brokerage double charge i assume?

Thanks

This post has been edited by TrustULoveU: Dec 4 2020, 05:31 PM

It is not double charge. Basically it is 2 separate transactions, and hence you will be charged once for buying and one more time for selling.
Or to make it easier to imagine, pretend that you bought today and sold tomorrow. The calculation is the same.

However, the brokers do aggregate the fees of all buy transactions for the day, and all sell transactions for the day when it comes to calculating the minimum brokerage fee.

For my rakutentrade its like this

I use back your example
so you only have 2k units, cost price 6.70
you sold all at 6.83
then you bought back 2k units at 6.65

in your portfolio, the average unit price calculation considers all 4k units, so it will be.
(2000*6.70)+(2000*6.65)
13400+13300 =26700
26700/4000 = 6.675 per unit

so at the end day you will have 2k units at 6.675

your realized profit will be 6.83-6.675 =0.155
0.155*2000 = RM310


Rakutentrade provides day trade rebate for contra account. means if you buy and sell the same share on the same day, you only pay one side of the brokerage fee

This post has been edited by JaniceWLV: Dec 5 2020, 12:38 PM

How is this profit when I'm seeing loss at my portfolio? Even though I bought at a lower price and sold earlier im still at a lost

He doesn't have your numbers of the loss.
He is only trying to help with his assumption of the calculation lol...which shows a profit.
Maybe if you showed him the actual loss and the total transaction fees and costs then someone may be able to figure it out...

I bought 2k units at 6.78
Then sold next day at 2k units of 6.83
Then buy back in again same day at 6.65.

My total avg now is 6.715 in my portfolio
This is a -130

Since the closing price was 6 65

Sorry ah.. im noob in this.. seems disadvantage for me to buy at the same day

What brokerage are you using?
That does not seem like your profit from the trades.
-130= (6.715-6.78)*2000 is just the movement of your average value of holdings from the previous day to the current day, assuming you bought the exact number of units also disregarding any other fees.
Calculate your cash flows for the trade for your actual gains.
Hope that helps.

This post has been edited by thecurious: Dec 5 2020, 08:52 PM

thats weird, your total average is correct just as per my calculation, but why still negative
maybe share out what trading platform you are using so others can know the situation better?

I using maybank CDS , that's weird that why its disadvantage for me to buy back at the same day even if I bought at lower price my portfolio will still turn red

I'm using maybank cds sir, it seems to be disadvantage to buy back from the same day because the system will prioritise the buy first and average them

The number you showed is likely just the daily movement in share price of the same unit...
you should be able to find another category on the "realized gain/loss", your profits from the sale should be reflected there.

Its weird to average from the previous day that I bought because no matter what closing price it close on the day itself I bought back, somehow it will turn red on my portfolio on the next day after it averaged.. I may sell at a high price, but when I buy back at a lower price( closing price) it will average up on the closing price I bought..