Investment gain/loss not correct

Can anyone offer some guidance on how the FreeTrade investment gain/loss is calculated against a investment for one company? For example, I have invested in BP on the following dates, with two sells on the 18th May and with speculative sell using today’s price of £3.16 if I were to sell my entire holding.

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Here is the FreeTrade snapshot

How come my gain is -£1.79 yet FreeTrade shows £4.46

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I’m pretty sure the gain/loss takes into account any dividends that you’ve received from the company, that’s possibly why it’s higher than what you calculate.

I haven’t received any dividends yet from BP though.

Hmm, I’m stumped then. I know there was an issue today with some of the pricing and the graphs, but I wouldn’t have thought that would have changed the calculation - maybe see if it changes tomorrow at market open, or drop Support a message?

I’m guessing this is down to the first in first out calculation for FTs P&L rather than a cost average buy and sell.

Correct me if I’m wrong but the profit/loss shown in FreeTrade in this example is wrong then? Because as you can see the profit if I sell is not £4.46 but -£1.79?

It’s “correct” though given how FT work out the AVG price which given a first in first out calculation makes the avg 5p less than your AVG price.

I think most users would prefer not to use a first in first out AVG calculation

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I suspect many newbie investors are using this profit/loss calculation when selling out a position which in my instance would result in a -£1.79 loss instead of £4.46 gain.

Can someone from FreeTrade confirm this is how it works as it is very misleading.

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I am using morningstar for portfolio tracking and it shows numbers completley different from the FT despite my best attempt to put all the fees in religiously. I am learning to live with it, although not sure what is causing the difference, possibly conversion rates (which wouldn’t apply to your BP stock).

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If I were to sell my entire BP holding this evening using the closing price of £3.23 I would get back

The FreeTrade app showing that my position with BP is 3.57% (£11.23) up.

But if I work out my gains manually I’m only seeing an overall profit of £5.28

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Please can someone from FreeTrade look at this issue and advise if it is something I’m doing wrong because there is a clear discrepancy between what FreeTrade shows as profit and what I am calculating.

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Hey Neil

I couldn’t figure it out to the penny but I think it’s to do with the oldest shares being ‘sold’ when you sold some off in May

Because those were more expensive I guess freetrade saw that as selling for a loss at that time

If you take those out of the calculation the remaining shares would look like:

Also looks like stamp duty isn’t included in the calculation of profit

I guess this is one of those things where there’s no ‘right’ way to work out profit if some but not all shares have been sold :man_shrugging:

I guess whichever way thd taxman calculates profit will be the best way to show it so long as you have the historic profit/loss calculation for part sales for easy identification later on. I know better statements will be one thing in the future for freetrade to look for

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What is concerning is that if people are relying on the profit/loss figure in FreeTrade then using my calculations this figure is WRONG.

Many first time users of FreeTrade might be buying and selling a number of shares and then using this figure to say oh great I’ve made 10% profit now on this stock I’m going to sell the entire holding when in fact the figure is not 10%.

Would be very useful if someone from FreeTrade can reply to this thread and advise.

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It would be helpful to have an example calculation from free trade especially including selling multiple shares. Anyone asked on the chat?

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Just looking into this a bit further. If I were to sell my holding now with the share price of £3.28 I’d get back £330.88

FreeTrade is showing my investment is up +5.04% (around £15.87 profit)

Yet my manual calculations show just £9.93 profit

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I can now see where FreeTrade is getting the +5.04% (around £15.87 profit). They are using my average price per share £3.1158. So the current cost to buy the shares using the avg. price per share is £314.70 and if I sold at the current share price I’d get back £330.88 giving a profit of £16.18.

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But in reality, my overall profit should I sell this holding would be £9.93 based on my manual calculation. Like I have mentioned before this Investment gain/loss is misleading and not correct, or am I wrong - please can someone from FreeTrade clarify this ASAP as I’m pretty sure I’m not the only person using the Investment gain/loss figure.

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That makes sense, the average price per share is also based on the remaining shares, after selling the older most expensive shares. So the current average is lower than the overall average of all buys

I think any way of calculating the remaining profit is open to interpretation. For example of you only had 1 share left it wouldn’t make sense (to me) to show the total profit on all shares previously bought/sold

The issue is the gain/loss is misleading. I “was” using this figure as a indication of my current position, selling for a £15.87 gain where the true overall gain for this holding is just £9.93.

How do other people keep track of such figures?

Because of this thread, I checked the figures of one of my own shares.

If I sold my shares I would get back £786.90 (15 shares at £52.46/share)

According to the gain/loss, it would be +70.49.

My total buys (no sells) amounts to £720.30. Now that plus the supposed gain does not equal what I would actually get back

720.30 + 70.49 = 790.79

Just noticed the gain loss just went up but the sell share price didn’t.

Any dividends received for this stock, because I think that is included in any gain…

Nope, no dividends