Share Average Price Calculator
A stock market average calculator helps you calculate the average price down of the stock. Many investors, retail investors, or any institution never buy the entire allocation in a single purchase. Many investors ease their position by purchasing the same stock or crypto again at a lower price.
It’ll reduce the overall risk and smooth out some market volatility.
Average Stock Price Calculator
Stock Average Price Calculator helps you to calculate the average share price. When you purchase the same stock multiple times at a lower price, use this calculator to get an average price down between the first purchase of shares and the second purchase of shares.
Just enter the number of stocks you purchase with the purchase price for each buy to get the average stock price.
Entering the stock market is easy, but it requires lots of analysis to make money from the stock market. There are many books, videos, and pdf available with types of trading strategies. It is difficult for a beginner to digest all the information and start trading.
The formula for the average price down of the stocks:
((Quantity 1 * Price 1)+(Quantity 2 * Price 2)) / (Quantity 1 + Quantity 2)
For example, if you have bought 100 shares of Reliance Industries Limited (RIL) at INR 2000, expect it to move upwards. But somehow, the stock price goes down to INR 1500, but you believe the stock price of Reliance will go up. For this, you start purchasing more shares, for example, 100, which decreases the average cost of the stock.
Just enter the first stock unit and then the price, and then enter the second stock unit with its price. See the result now!
Using this calculator, you know how to trade and earn profit in the stock market.
When you purchase again, follow the same procedure to calculate the average stock price.
Why Is Share Average Down Calculator Needed?
Averaging down is an additional investment in financial instruments or assets. If the crypto or stock price decline from the original purchase price. This way, the average cost of the stock comes down. It is beneficial to investors who want to have a long-term investment horizon.
Pros of Average Down
The pros of averaging down mean an investor can buy more stock at a lower price than previously paid.
If an investor knows about the company’s growth and believes that the stock will rebound to a new high after a price decline, then the investment in the instrument will justify.
Cons of Average Down
Increase of holding on the declining stocks.
Before averaging down, research the cause of the decline to start holding more on the stock.
Use this formula: ((Quantity 1 * Price 1)+(Quantity 2 * Price 2)) / (Quantity 1 + Quantity 2)
The average of a stock calculates the average stock price when you purchase the same stock multiple times.
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