### 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.

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

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

## Comments

0 comments

Please sign in to leave a comment.