Whether you are trading Bitcoin, Stocks or Forex. This tool allows you to determine the average entrance and the exit price for your trades. It supports up to 10 orders. just enter the entire count of contracts/shares for each buy or sell and input the order price to get the result .
If you are an investor then this creature can be used to calculate the average parcel price of a lineage that you purchased multiple times. This average down calculator will give you the average price for both median down and average up. Simply input the number of shares of each bribe and the leverage price of the stock to get the average contribution price .
When you need this average down calculator?
When you are looking to open a trade wind with multiple entries or when you want to close down your position using two or more exits. Either way you wish to know the know the modal entry monetary value or the die price ahead .
Or let ’ s say you are presently in a lose trade and you wish to buy or sell more contracts to average down your submission so that you can breakeven. It is essential that you determine the average price particularly before adding to your existing side .
BitMEX, Bybit and other crypto derivatives platforms has got tools to calculate the profit / passing and to estimate the elimination cost ahead. But they do lack this average down calculator .
so how does the calculation works ?
How to calculate the average price?
Let us assume you have placed a buy order of 100,000 Bitcoin contracts at the price of $ 10,000. later on you wish to buy 100,000 contracts additionally at the price of $ 8,000. So the average cost of your 200,000 contracts will be $ 9000 .
here is the formula to calculate the average price.
Read more: Post-Crumpocalyptic
Average cost formula:
To calculate the average price you need to know the sum contracts / shares quantity and the purchase price of each contract / partake .
1. Total number of contracts / shares bought = 1st contract amount + 2nd compress amount + 3rd contract sum + …
case : 100,000 + 100,000 = 200,000 contracts
2. Total amount bought = ( 1st contract come * its buy monetary value ) + ( 2nd compress measure * its buy monetary value ) + ( 3rd contract total * its buy price ) + …
exemplar : ( 100,000 x $ 10,000 ) + ( 100,000 adam $ 8,000 ) = 1,000,000,000 + 800,000,000 = 1,800,000,000
Average price = Total amount / Total contracts
exemplar : 1,800,000,000 / 200,000 = $ 9,000
By using this average price calculator tool you don ’ t need any Excel sheet or you don ’ t have to go through any long-winded procedure of calculating numbers manually. Just enter the contract quantity and its buy price. The joyride will do the lie.
This tool is not lone for cryptocurrency traders but it besides applies to stock trade and Forex .
