{"id":178933,"date":"2021-04-28T18:24:00","date_gmt":"2021-04-28T22:24:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/average-price\/"},"modified":"2025-04-14T13:00:58","modified_gmt":"2025-04-14T17:00:58","slug":"average-price","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/average-price\/","title":{"rendered":"Average Price"},"content":{"rendered":"\n<p>The <strong>Average Price<\/strong> at Interactive Brokers (IBKR) is a feature that helps traders track the average price at which they have purchased a particular asset or security. This metric is typically used to assess the overall cost basis of an investment, providing a clearer picture of the position&#8217;s performance over time. When you buy shares in multiple transactions at different prices, IBKR calculates the <strong>average price<\/strong> by factoring in the total cost of all shares purchased, including commissions or fees, and dividing it by the total number of shares you own. This gives you a single price that represents the average cost of your holdings in a particular security.<\/p>\n\n\n\n<p>For instance, if you buy 100 shares of a stock at $50 each and later purchase another 50 shares at $60 each, your average price would be calculated by taking the total amount spent ($50 x 100 + $60 x 50) and dividing it by the total number of shares (100 + 50). The average price helps you understand your investment&#8217;s break-even point. If the stock price is above the average price, you are in profit, and if it&#8217;s below, you are at a loss. This calculation is essential for traders to make informed decisions about buying, selling, or holding securities.<\/p>\n\n\n\n<p>Interactive Brokers automatically calculates and updates your average price for each asset in your account, and it can be viewed easily through their <strong>Trader Workstation (TWS)<\/strong> platform or mobile app. The <strong>Average Price<\/strong> feature is particularly useful for investors who trade frequently or accumulate shares in stages, as it provides a comprehensive view of the overall cost of a position rather than just focusing on individual trades. By knowing the average price, you can better manage risk, track performance, and make more strategic decisions in line with your investment goals.<\/p>\n\n\n\n<p>The average price can be viewed as a column in both Classic TWS and Mosaic platforms. If using TWS with &#8220;Average Cost&#8221; settings, the average price may not update correctly when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporate actions occur<\/li>\n\n\n\n<li>Positions are opened through multiple trades<\/li>\n\n\n\n<li>Positions are transferred into the account<\/li>\n<\/ul>\n\n\n\n<p>To adjust the average price in TWS:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Click Account menu and select Account Window<\/li>\n\n\n\n<li>Scroll to Portfolio section<\/li>\n\n\n\n<li>Right-click the position<\/li>\n\n\n\n<li>Choose Adjust Average Price<\/li>\n\n\n\n<li>Edit the Average Price<\/li>\n\n\n\n<li>Click OK<\/li>\n<\/ol>\n\n\n\n<p>Note that average price adjustments cannot be made on IBKR Mobile. The official cost basis is always accurately reflected in account statements regardless of TWS display settings<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A measure that simplifies a range of prices to a single price that can be compared to any point to determine if that price is higher or lower than expected. Average price is calculated by adding all of the prices in the range and then dividing that sum by the number of prices. For a bond , average price is calculated by adding the face value to the purchase price and then dividing that sum by two. In the\u00a0 Transaction Cost Analysis , the average price is the average trade price used in the Order Details section of the report. In the FX\u00a0Portfolio &#8211; Virtual FX \u00a0Position section of the TWS\u00a0Account Window, this is the average price per contract. In the TWS\u00a0Account Window , this is the average cost of stock and securities options opening positions, including commissions.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":true,"footnotes":""},"traders-glossary":[13252,13251],"class_list":{"0":"post-178933","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-a","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"This metric is typically used to assess the overall cost basis of an investment, providing a clearer picture of the position&#039;s performance over time.\" 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