Cost basis: what is your average buy price?
Cost basis is the average price at which you bought an asset. It's the key figure for knowing whether you're up or down on a position.
Definition
Cost basis is the average cost of one unit of an asset you hold, fees included. If you bought the same security at several prices, the cost basis is the weighted average of those buys.
How to calculate it
Add up the total amount invested in an asset, then divide by the total number of units held. Example: 10 shares at €100 then 10 at €120 give a cost basis of (1000 + 1200) / 20 = €110.
Why it matters
By comparing the current price to your cost basis, you instantly know whether the position is winning or losing. It's also the basis for computing your taxable gain when you sell.
Cost basis in MyEzAssets
When adding a position, just enter your average buy price. MyEzAssets compares it to the live price to show your unrealized P&L in real time, with no manual calculation.