🧭 Contract Trading｜Average Entry Price
· What it is: Partial closing usually does not change the average entry price of the remaining position; adding to a position recalculates the average price.
· Why it matters: Averaging costs only makes the average price look more favorable; it does not reduce the risk borne by the entire position. The larger the position, the greater the profit or loss from the same price movement.
· Note: Before adding to a position, calculate the total position size and corresponding liquidation price afterward. Don’t focus only on the lower average price.
$BTC 80032.01（-0.64%）
#BTC
· What it is: Partial closing usually does not change the average entry price of the remaining position; adding to a position recalculates the average price.
· Why it matters: Averaging costs only makes the average price look more favorable; it does not reduce the risk borne by the entire position. The larger the position, the greater the profit or loss from the same price movement.
· Note: Before adding to a position, calculate the total position size and corresponding liquidation price afterward. Don’t focus only on the lower average price.
$BTC 80032.01（-0.64%）
#BTC
