Entry or Average Entry Price

Entry Price

The entry price is the price at which the trader opens the position. 

In other words, if you have 5000 BTC/USDT contracts at 10,000 USDT, the entry price will be 10,000 USDT. 

Average Entry Price

Average Entry Price is the average price the trader entered their position.

Average Entry Price Equation (Inverse Contract)

$$\small\textsf{Average Entry Price}={{\textsf{Total Quantity}\over\textsf{Total Entered Position Value}}}$$

$$ \small \textsf{Total Entered Position Value} = {{\textsf{Entered Quantity #1}\over\textsf{Entry Price #1}}}+{\textsf{Entered Quantity #2}\over\textsf{Entry Price #2}} + {\textsf{....}}+{\textsf{Entered Quantity #n}\over\textsf{Entry Price #n}}$$

<Average Entry Price Example>

Bob enters into a position of 100 BTC/USDT contracts at 10,000 USDT and then adds another 100 BTC/USDT contracts at 12,000 USDT. At this point in time, Bob’s average entry price of his current position is as follows.

$$ \small \textsf{Total Entered Position Value} = {\textsf{100}\over\textsf{10000}}+{\textsf{100}\over\textsf{12000}} = \textsf{0.01833333 BTC}$$

 $$ \small \textsf{Average Entry Price} = {\textsf{200}\over\textsf{0.01833333}} =\textsf{10,909.09289256 USDT}$$