"Averaging Down" strategy needs average share price to be displayed in the market currency

Good morning

Freetrade have done an excellent job of displaying financial amounts in £pounds for both UK and foreign stocks; and have got rid of the antiquated and confusing “pennies” (GBp / GBx). I personally think this is really good.

However, there is one scenario where it would be very useful to see a financial amount displayed in the foreign currency (eg, $dollars) as well as £pounds… And that is “Average Price Per Share”.

This is for anyone who uses “averaging down” strategy. “Averaging down” is where you buy shares when the price of the share is less than the average you have previously paid for other lots. This strategy reduces your average price per share downwards, and therefore to make a profit you only have to exceed the lower average price.

So for example, if Apple is trading currently at $118 it is not easy for me to quickly ascertain if this is higher/lower than my “average price per share” of £89.72

Thanks

Your profits are tied to GBP-USD rates so I actually think looking at it in GBP is more useful as far as figuring out profitability goes.

I had a different problem with one of my stocks when I remember that I bought it for $100 and it went up to $110 but my gains were closer to 3% because GBP/USD rate did change a lot. That was quite confusing at first.

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Agree, it’s particularly annoying because the current trading price is in one currency, and the average is in another - meaning you literally have to work it out yourself.

Maybe a toggle to switch between each currency would be useful? Given FT is intending to expand into other markets, with additional currencies. Or simply show both.

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I think a toggle is the best option. like if you tap the amount it switches between the currencies

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Yes I totally agree - I have suffered from the same confusion in the past, and so have built a master spreadsheet which calculates the true cost of the actual purchase (taking into account exchange rates etc).

In relation to the original topic, I like to see what the average share price in my portfolio so that I can compare it directly to the current share price. If I decide to purchase more shares then, as you quite rightly say, I have do some mental arithmetic to add the cost of the FX

@Jonny / @Brendon

Yes a toggle would work for me too, or displaying ÂŁpounds and $dollars simultaneously

Agree. We should at least have the option to flick between GBP and USD/other currency wherever possible.