Whether you are trading Bitcoin, Stocks or Forex. This creature allows you to determine the average entry and the exit price for your trades. It supports up to 10 orders. just enter the total issue of contracts/shares for each bargain or sell and input the order price to get the solution .
If you are an investor then this tool can be used to calculate the average share price of a banal that you purchased multiple times. This average down calculator will give you the average price for both average down and average astir. Simply input the count of shares of each buy and the purchase monetary value of the stock to get the modal share price .
When you need this average down calculator?
When you are looking to open a craft 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 average submission monetary value or the exit monetary value advance .
Or let ’ s say you are presently in a lose deal and you wish to buy or sell more contracts to average down your entry so that you can breakeven. It is all-important that you determine the average price peculiarly before adding to your existing position .
BitMEX, Bybit and other crypto derivatives platforms has got tools to calculate the net income / personnel casualty and to estimate the extermination cost ahead. But they do lack this average down calculator .
thus how does the calculation works ?
How to calculate the average price?
Let us assume you have placed a buy decree 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 price of your 200,000 contracts will be $ 9000 .
here is the formula to calculate the median price.
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Average cost formula:
To calculate the average price you need to know the sum contracts / shares quantity and the leverage price of each sign / parcel .
1. Total number of contracts / shares bought = 1st contract total + 2nd contract come + 3rd contract sum + …
example : 100,000 + 100,000 = 200,000 contracts
2. Total amount bought = ( 1st sign total * its buy price ) + ( 2nd shrink measure * its buy price ) + ( 3rd contract amount * its buy monetary value ) + …
example : ( 100,000 adam $ 10,000 ) + ( 100,000 ten $ 8,000 ) = 1,000,000,000 + 800,000,000 = 1,800,000,000
Average price = Total amount / Total contracts
exercise : 1,800,000,000 / 200,000 = $ 9,000
By using this average price calculator instrument you don ’ t need any Excel plane or you don ’ t have to go through any boring process of calculating numbers manually. Just enter the contract measure and its purchase price. The instrument will do the rest.
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This instrument is not alone for cryptocurrency traders but it besides applies to stock trade and Forex .