What is the 'average price' and how do I update it? – SelfWealth

The 'average price' of shares is a way to report the price at which you have bought a security, where multiple transactions are involved. Your average price can help you calculate whether or not your investment gained or lost value.

If you purchase securities for the first time in your Selfwealth account (i.e. do not transfer them in) the average price will automatically be updated, until you sell a parcel.

Why does Selfwealth show my 'average price' as $0?

For more information on this topic please click here.

How do I calculate the average price of a holding?

Imagine that an investor purchases three separate parcels of the same security on different days, and at a different price. To calculate the average price, they would need to:

Take the total number of shares held = 300
Add together the combined value of each parcel of shares = $17,750.00
Calculate the average price by dividing the total purchase price ($17,750.00) by the number of units (300) = $59.17

You can find a record of your past purchases by either referring to your contract notes, or by viewing the 'My Orders' section on the Selfwealth website or mobile app.

Does the average price update automatically when I sell shares?

Once you have sold a parcel of shares, the average price will not be adjusted as the system cannot determine which parcel of shares you have sold, meaning it cannot calculate the new average price.

If we use the current example of holdings above, each parcel of shares has a different unit price. If you were to sell 75 units, the system cannot select which parcels of units have been sold and therefore is unable to automatically calculate the new average price.

Please note: for more information on determining which parcels have been sold please see this article from the ATO website - Identifying shares or units sold