When closing a position, PropReports picks which shares to sell (or cover) using intra-day First In, First Out (FIFO), followed by overnight FIFO. This means that your oldest shares for the same day will be closed first, followed by the oldest shares taken overnight. Using the FIFO method: - Selling 5 shares at $1.30 would realize a gain of $1.00 (1.30 * 5 - 1.10 * 5).
- Selling 1 share at $1.30 on Thursday would use lot #1 (the oldest overall lot since there were no opening trades that day) for a realized gain of $0.30 ($1.30 - $1.00).
- Selling 1 share at $1.30 on Wednesday would use lot #4 (the oldest lot for that day) and realize a gain of $0.15 ($1.30 - $1.15).
- Selling 3 shares on Wednesday would use lot #4, lot #5 and lot #1 for a gain of: $0.55 (($1.30 - $1.15) + ($1.30 - $1.20) + ($1.30 - $1)).
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