After opening a position in several batches, how exactly is the average entry price calculated?
The break-even price is the price at which you truly neither profit nor lose after accounting for trading fees and funding fees: for a long position, it’s usually higher than the average entry price; for a short position, it’s slightly lower.
Don’t laugh—I only learned this the hard way, too.
Trading fees are also part of the cost of holding a position. The longer you hold it, the more important it is to calculate them accurately.
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