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Some execution providers use a different method for computing profits and losses (e.g., average price method) or do not retain a correct cost basis for overnight positions. In those cases, the profits and losses P&L your execution provider is showing will not match PropReports. PropReports uses an intra-day First In, First Out (FIFO), followed by overnight FIFO methodology. Although a P&L may appear different, when the entirety of the position is closed out, the traders end P&L will be equal using either accounting method.

If you are curious about how FIFO can affect the reporting of your P&L, please Please read through the examples below .to see exactly how FIFO differs from another accounting approach such as the Average Price Method:

Average Price Method

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If one share of Company XYZ's stock is purchased on Monday for $1.00, two shares on Tuesday for $1.10 and 1.05 respectively, and two shares on Wednesday for $1.15 and the other at 1.20, the average-price method assumes that five shares were purchased for an average cost of $1.10. This number is arrived at by adding $1.00 + $1.10 + $1.05 + $1.15 + $1.20 and dividing the sum by 5, because there are five shares total in the pool.

Using the Average Price 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 realize a gain of $0.20 ($1.30 - $1.10).
Selling 1 share at $1.30 on Wednesday wouldn't make a difference if using the average price method and the gain would be again, $0.20 ($1.30 - $1.10).
Selling 3 shares on Wednesday at $1.30 would equal a gain of $0.60 given: (($1.30 - $1.10) + ($1.30 - $1.10) + ($1.30 - $1.10)).

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Lot	Day	Type	Qty	Symbol	Price
1	Monday	Buy	1	XYZ	$1.00
2	Tuesday	Buy	1	XYZ	$1.10
3	Tuesday	Buy	1	XYZ	$1.05
4	Wednesday	Buy	1	XYZ	$1.15
5	Wednesday	Buy	1	XYZ	$1.20

...

Open Positions In PropReports

An open position's average price seen in PropReports reflects the most recent execution prices for all shares that have yet to be closed out. If an overnight position is day traded, the matching day traded shares will not affect the average price of the open position at close of the day. This is because of the intra-day and overnight FIFO methodology PropReports uses, as described above.

For a clear example, please review the table below:

Lot	Day	Type	Exec. Qty	Exec. Price	Position Qty	Average Price	Note
1	Monday	Buy	1000	$10.00	1000	$10.00
2	Monday	Buy	1000	$11.00	2000	$10.50
3	Monday	Sell	500	$10.75	1500	$10.67	Open Position: 500 shares at $10.00 and 1000 shares at $11.00.
4	Tuesday	Buy	500	$10.50	2000	$10.63
5	Tuesday	Sell	500	$10.75	1500	$10.67	Note that the Average Open Price is NOT affected by this Daytrade.
6	Wednesday	Sell	1000	$10.70	500	$11.00	The final 500 shares of the $10.00 lot were closed, and 500 of the $11.00 lot were closed.
7	Thursday	Sell	500	$10.25	0	$0.00	All shares closed.

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