I recently asked IG a question about the FIFO netting method they use and how it affects the average price of your remaining position? Maybe I will have better luck getting a clearer answer from the community.
I have the following example:
2 purchases:
1st: 8 units @ price 110
2nd: 8 units @ price 100
Therefore average price is 105 for 16 units purchased.
If I sell 4 units at 100, I assume that this sale should be netted against the 1st purchase of 8 units @ price 110, effectively meaning that this purchase is now worth 4 shares @ price 110 and I have realized a loss of of (4 x -10) = -$40 which is reflected in my capital.
My portfolio should be left with:
1st: 4 units @ price 110 (FIFO nets my sale of 4 units against my first purchase of 8 units @ price 110)
2nd: 8 units @ price 100
Therefore, the average price of the remaining 12 units is now 103.33.
I would like the community to let me know if this example is correct? My issue is that, using the above example, when I sell 4 units in a real-life situation, IG does not adjust the average price of my position in my Portfolio. IG continue to show my average price as 105.
