After adding to a position several times, how is the average entry price calculated?
Adding to a long position at a price below your average entry price lowers the average, but it also increases your position size, so a pullback of the same magnitude will result in a bigger loss.
Here’s the key point: before adding to your position, calculate your total position size and new liquidation price. Don’t focus only on the lower average entry price.
By the way, take a look: $BTC current price 82246.01 (24h +0.92%).
Leverage isn’t compulsory. If you don’t understand it yet, it’s perfectly fine not to use it.
#BTC
Just chatting—whether you make money or lose it, you’re responsible for it yourself.
Adding to a long position at a price below your average entry price lowers the average, but it also increases your position size, so a pullback of the same magnitude will result in a bigger loss.
Here’s the key point: before adding to your position, calculate your total position size and new liquidation price. Don’t focus only on the lower average entry price.
By the way, take a look: $BTC current price 82246.01 (24h +0.92%).
Leverage isn’t compulsory. If you don’t understand it yet, it’s perfectly fine not to use it.
#BTC
Just chatting—whether you make money or lose it, you’re responsible for it yourself.