Why Is My Profit or Loss on a Partial Close Different From My Average Price?

When you close part of a Commodities position, your oldest lots are closed first, so the profit or loss on that close is measured against the price you paid for those lots, not against the average entry price on your screen. Each order you add to a position is kept as a separate batch at its own price, and the app shows the average of those batches. For example, if you buy 5 lots of XAUUSD at US$4,065 and then 3 lots at US$4,045, your average entry price is US$4,057.50. Selling 4 lots at US$4,055 closes 4 lots from the US$4,065 batch, so it books a loss of US$40, not the loss of about US$10 that the average suggests. Your total result is the same either way: once the whole position is closed, it matches the average price exactly. Prices are illustrative, not live quotes, and amounts are before fees.

• Oldest batch first: every order you add is kept as its own batch at the price it filled at. A partial close always closes the oldest batch first, then the next oldest. This applies to Long and Short positions, and to any order in the opposite direction, whether Market, Limit or Stop. You can't choose which batch to close.
• The average on your screen: the average entry price is the weighted average of the batches still open. After a partial close, it's recalculated from the batches that are left, so it can move. In the example, the 4 lots left are 1 lot at US$4,065 and 3 lots at US$4,045, so the average becomes US$4,050.
• It evens out: if you then close the remaining 4 lots at US$4,055, the lot bought at US$4,065 loses US$10 and the 3 lots bought at US$4,045 gain US$30, a profit of US$20. Across both closes the result is −US$40 + US$20 = −US$20, exactly what the average price suggests: (US$4,055 − US$4,057.50) × 8 lots = −US$20.
• Only the split changes: your total realized profit or loss over the whole position is the same as on an average-price basis. What differs is how that result is split between individual closes.
• One price, no difference: if you opened the whole position with one order, or every order at the same price, a partial close gives exactly the result the average suggests.
• Fees: the amounts above are gross. Each close also pays the JFX & KBI fee of US$0.10 per lot, plus 11% VAT, and any swap applies as usual. Pluang currently charges no transaction fee on Commodities (0%).
• Prices in these examples are illustrative, not live quotes. 1 lot of XAUUSD is 1 troy ounce, so each US$1 move is US$1 per lot.

Related questions:

Q: Am I losing money because of how partial closes are calculated?
No. The oldest-first method changes only which close a profit or loss is booked on, not the total. Over the whole position, your realized result is the same as if every close were measured against the average price. A partial close that looks worse than the average suggests is balanced by a later close that looks better, and the other way round.

Q: Can I choose which lots to close first?
No. Commodities positions on Pluang are always closed oldest batch first, whether you reduce a position or close it in steps. The average entry price is shown so you can see where the whole position breaks even, plus costs.

Q: Does this also apply to a Short position?
Yes. If you build a Short with several orders, a partial close covers the oldest Short batch first. For a Short, the profit or loss on that close is (that batch's entry price − your exit price) × lot size × the number of lots closed.

Q: Why did my average entry price change after I closed part of my position?
Because the lots you closed came from your oldest batch, and the average is now calculated only from the batches still open. If your oldest batch was more expensive than the rest, the average for what's left goes down; if it was cheaper, the average goes up.