There are a lot of things to consider when investing in the Indian Stock Market, though. One of the most important things to consider is the Stock or Share Average Price. This free tool or calculator will help to find the average share price of your stock bought at different prices with the same or different quantities.
An average share calculator can be a very helpful tool for investors in Stock Market. It can help you determine the average price of a stock over a period of time, which can be helpful in making investment decisions. Additionally, it can help you track your progress and performance over time.
How to calculate the using the above Calculator?
The use of above calculator for calculating average share price can be used by simply following these steps.
- Under the First Buying Quantity Section: Just entered the number of shares that you bought for the first or during the first investment.
- Now under the First Traded Price Section: Just entered the price that you have paid for the shares that you have bought in total.
- Now Repeat the above process till the third quantity or the third time that you have bought shares.
- In case you don’t buy any shares for the third or further times then leave it blank.
What is the Stock or Share Average Price Calculator?
An average price calculator can be a helpful tool for investors who are looking to manage their portfolios in a more efficient way. By providing data such as the number of shares bought, the purchase price, and the current price, the calculator can provide information on the average price paid per share and the current value of the position.
This Calculator can be helpful in determining whether or not to add to a position or exit a position. In addition, the calculator can also provide information on the percent change in the position.
Why you should use the Share Average Price Calculator?
A stock average down calculator can be a helpful tool for investors for a number of reasons.
- It helps you determine the average price of a stock over a period of time, which can be helpful in making investment decisions.
- The above tool or calculator can help you track your progress in reducing the average price of a stock, which can be motivating as you work to reach your investment goals.
- The calculator can help you keep eye on the overall performance of the stock market, which can be useful in making informed investment decisions.
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Benefits of Average Share Price Calculator
The above calculator or tool can be handy for day traders and investors for a number of reasons.
- It’s 100% Free.
- User friendly that’s why very quick and easy to use.
- Save your time from the lengthy calculation.
- It will also help you in making another trade or help you to make a buy or sell decision.
- This tool will help you on making decisions based on whether the average share price of your holdings is undervalued or overvalued.
What is the Stock or Share Average Price?
Stock or Share Average Price is simply a weighted average price of stock buying at the different traded prices with the different or same quantity of a particular stock.
For example, if stock of SAIL is bought 3 times in the same trading account having traded prices as ₹20, ₹30, and ₹50. with different quantity 50, 30, and 60 respectively.
The average buying price shown in the trading account is nothing but a weighted Average Price of the stocks that have been bought at different traded prices with the different or same quantities.
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Formula to Find Stock or Share Average Price
The average share or stock price can be calculated as:
For Example, if we consider the stock has been bought at different traded prices let’s say: P1, P2, P3, and P4, with quantities Q1, Q2, Q3, and Q4 respectively.
The formula for Stock or Share Average Price will be:
| Stock or Share Average Price = (P1 × Q1 + P2 × Q2 + P3 × Q3 … + Pn × Qn) / (Q1 + Q2 + Q3 … +Qn) |
Where,
- Pn = Stock Buying Price for nth times.
- Qn = Stock Quantity bought for nth times.
FAQs
Q: How do you calculate average stock?
Ans: Formula for calculating stock average price is already shared in the above post.
Q: Does an average down a good idea?
Ans: Yes, an average down is a good idea for a long-term investor in the stock market.
Akash completed his B.Tech in Electronics and Communication Engineering. Now he is following his passion for “Writing” on FinTech through this Blog. In a meantime, he loves to listen to music on Spotify.
Thank You for this Amazing Tool.
Thank You for this amazing free tool.
nice tool I am a trader I need this tool because I trade a lot and need to calculate average price . Thank you