Here are the details of how the position’s average entry price is calculated for the different Derivatives products. 

 

 

• Inverse Contracts (Perpetual & Futures) 
• USDT Perpetual Contract 
• USDC Perpetual Contract

 

 

Inverse Contracts (Perpetual & Futures)

Inverse Perpetual and Futures contracts are quoted in USD and settled in cryptocurrency, such as BTC. The average entry price is calculated as follows:

 

Formula

Average Entry Price = Total Quantity of Contracts / Total Contract Value

Total Contract Value= [(Quantity1/Price1) + (Quantity2/Price2) + (Quantity3/Price3)....]

 

Take BTCUSD as an example,

A trader bought 50 contracts of BTCUSD at $10,000 and another 50 contracts at $15,000.

Si trader ay bumili ng 50 contracts ng BTCUSD sa halagang $10,000 at isa pang 50 contracts sa $15,000.

Total contract value in BTC = (50/10,000) + (50/15,000) = 0.00833333

Average entry price = 100/0.00833333 = $12,000

 

 

 

USDT Perpetual Contract 

USDT Perpetual contracts are quoted in USDT and settled in cryptocurrency, such as USDT.

 

Formula

Average Entry Price = Total Contract Value/Total Quantity of Contracts

Total Contract Value= [(Quantity1 × Price1) + (Quantity2 × Price2) + (Quantity3 × Price3)....]

 

Take BTCUSDT as an example,

A trader bought 1 BTC contract at 10,000 USDT and another 2 BTC contracts at 13,000 USDT.

Average Entry Price = (1 × 10,000 + 2 × 13,000) / (1+2) = 12,000 USDT

 

 

 

USDC Perpetual Contract

The average entry price of the USDC Perpetual contract is the weighted average price of your position during the current settlement cycle, which will be affected by the increase in position size. At the end of each settlement cycle, the Mark Price at the time of settlement will become the new average entry price. 

 

Formula

Average Entry Price = Total Session Value/Total Trade Size 

Total Session Value = [(Trade Price 1 × Trade Size 1) + (Trade Price 2 × Trade Size 2) …]

 

Take BTCUSDC as an example,

Trader A holds a long position of 0.5 BTC with an entry price of $50,000. Trader A decides to increase his long position by opening another 0.8 BTC at an entry price of $51,000.

Total Session Value = (50,000 × 0.5) + (51,000 × 0.8) = 65,800 USDC

Average Entry Price = 65,800/(0.5 + 0.8) = $50,615.38