Unrealized Gains(Losses)

[Daniel Hagerty]

 > From: Guitoun <guitoun@wanadoo.fr>
 > Date: Sat, 20 Apr 2002 16:52:41 +0200
 >
 > Ok but does "weighted averged" realy represent what i paid?

    Yes.  An example weighted average price from a series of
transactions is:
1 units	@	$10.50 ea	$10.50
2 units @	$12.75 ea	$25.50
4 units @	 $8.75 ea	$35.00
3 units @	$16.50 ea	$57.00
====================================
10 units	$12.00 ea      $120.00

    12.00 a unit is the weighted average price, calculated as
((10.50*1) + (12.75 * 1) + (8.75 * 4) + (16.50 * 3))/10

    This number seems to agree with what actually came out of pocket.

    Note that as I sell units at different prices, this doesn't affect
what I paid per unit, the only thing that can change that is buying more.

 > Is not  "weighted averged" the average upon time price  of the commodity
 > configured in the security of the account?

    If I understand the question, no.  It's not the average of the
prices in the commodity database, it's the average of prices you paid.

 > Shouldn't what I paid be the sum of the buy column  less the sell column?

    Not thinking in depth, that sounds like profit.