Formula
The Average Entry Price represents the average price at which you entered a particular 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 value to the 8th decimal place. For long XBT positions, floor() the 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
Suppose you bought 300 contracts of XBTUSD, with 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
So, in this example, the Average Entry Price for your position would be $29933.07 per contract.