How is my cost basis calculated?

The average cost basis is calculated as ∑ (quantity of shares bought per lot * price of shares bought in each lot) / total number of shares bought.

The cost basis does not factor in P&L generated by selling positions. Webull calculates the long position cost only on a standalone basis based on the number of shares purchased each time at their respective prices, divided by the total position. The average cost does not change with sell orders.

For example, a client buys 50 shares of AAPL at $100 per share. After this transaction, the client’s cost basis is $100. Later that week the same client buys 10 more shares at $150. Now, the cost basis is $108.33. (50*100) + (10*150) / 60. The client sells 5 shares. No matter the sell price, the cost basis of the position is still $108.33.

Please note that this example excludes commissions, which would affect the purchase price. Please note that this calculation refers only to the front-end cost basis, and that the book of record with our carrying broker may differ from these figures. Corporate actions or other changes may also impact your cost basis.

Your cost basis may appear different after transferring assets into Webull if the delivering brokerage did not deliver this information to us after we received your assets. Please note that it may take up to 7-10 business days after a transfer for cost basis information to be verified and updated from the delivering brokerage. Alternatively you may write into our Help Centre for assistance.