📐 Contract Trading | Average Entry Price
· Definition: When opening a position in multiple batches, the average entry price is the weighted average of each execution price, based on the quantity filled.
· Why it matters: The break-even price is the price at which you truly break even after fees and funding are taken into account. For a long position, it is generally higher than the average entry price; for a short position, it is slightly lower.
· Practical tip: Before adding to a position, consider your total position size and its corresponding liquidation price. Don’t focus only on lowering the average entry price.
$BTC 83730.86（+0.37%）
#BTC
· Definition: When opening a position in multiple batches, the average entry price is the weighted average of each execution price, based on the quantity filled.
· Why it matters: The break-even price is the price at which you truly break even after fees and funding are taken into account. For a long position, it is generally higher than the average entry price; for a short position, it is slightly lower.
· Practical tip: Before adding to a position, consider your total position size and its corresponding liquidation price. Don’t focus only on lowering the average entry price.
$BTC 83730.86（+0.37%）
#BTC