Formula
The Average Entry Price represents the average price at which you entered a position. The formula for calculating the Average Entry Price is as follows:
Average Entry Price in Satoshis = ((satoshi value 1 * (# of contracts 1/lot size)) + (satoshi value 2 * (# of contracts 2/lot size)) + ...)/ (total # of contracts/lot size)
- Lot size can be found on the contract's specification page.
Where Satoshi Value is:
Satoshi Value = lot size/Fill Price
- For short XBT positions, round the Satoshi Value to the 8th decimal place
- For long XBT positions, floor the Satoshi Value to the 8th decimal place
and the USD value can be calculated as:
Average Entry Price in USD = 1/(average entry price in satoshis/lot size)
Example: Calculating Average Entry Price
Let's say you bought 300 contracts of XBTUSD with a lot size of 100, in the following fills:
- 100 contracts at $29,800
- 200 contracts at $30,000
1. Calculate the Satoshi Values for both orders:
100 contracts at $29,800
- Satoshi Value = lot size/Fill Price
- Satoshi Value = 100/29,800
- Satoshi Value = 0.00335570
200 contracts at $30,000
- Satoshi Value = lot size/Fill price
- Satoshi Value = 100/30,000
- Satoshi Value = 0.00333333
2. Calculate the Average Entry Price in Satoshis
- Average Entry Price in Satoshis = ((satoshi value 1 * (# of contracts 1/lot size)) + (satoshi value 2 * (# of contracts 2/lot size)) + ...)/ (total # of contracts/lot size)
- = ((0.00335570 * (100/100)) + (0.00333333 * (200/100))) / (300/100)
- = 0.003340787
3. Calculate the Average Entry Price in USD
- Average Entry Price in USD = 1/(average entry price in satoshis/lot size)
- = 1/(0.003340787/100)
- = 29933.07
In this example, the Average Entry Price for your position would be $29,933.07 per contract.