Generally, there are 3 methods to calculate Average Price.

1. First In First Out (FIFO)
2. First In Last Out (FILO)
3. Average Cost Method

Canopy uses the Average Cost method.

For example:
You purchase 100 shares of A on 1/2/2021 at $8 per share and another 100 shares of A on 1/3/2021 at $10 per share.

Canopy average price = (100*8 + 100*10)/200 = $9

Please note that Price x Quantity may not always equal to Settlement Amount.

As such, Canopy's average price is calculated based on the actual trade price (without fees and commissions) and not the settlement amount (includes fees and commissions)