Average entry price
The average entry price refers to the weighted average price of all executed trades in the same contract direction (long or short). It is used to calculate Unrealized PnL and serves as a key reference for understanding position performance.
(I) Definition and calculation
When a trader opens multiple positions in the same direction, the system automatically calculates a weighted average of all filled prices to determine the current average entry price.
Formula:
Average Entry Price = Σ (Entry Price × Quantity) ÷ Σ (Quantity)
Example:
1st order: Buy 1 BTC @ 100,000 USDC
2nd order: Buy 2 BTC @ 120,000 USDC
Average Entry Price = (1 × 100,000 + 2 × 120,000) ÷ (1 + 2) = 113,333.33 USDC
This price represents the average cost of the position.
(II) Dynamic adjustment
When adding to a position: The system recalculates the average price based on the new execution price and quantity.
When reducing or closing a position: The average entry price remains unchanged since only part of the position is realized.
When the position is fully closed and reopened: The average entry price resets to the new opening price.
(III) Relation to unrealized PnL
Unrealized PnL is determined by comparing the current mark price with the average entry price.
Formula:
Unrealized PnL = (Mark Price - Average Entry Price) × Position Size (for long positions)
Unrealized PnL = (Average Entry Price - Mark Price) × Position Size (for short positions)
Thus, a lower average entry price (for longs) or a higher one (for shorts) improves potential profitability.
(IV) Viewing and usage
The average entry price can be found in the “Positions” section of the trading interface. It is used solely for PnL calculation and does not represent an executable or liquidation price. In volatile markets, it provides a clear reference for understanding overall entry cost and break-even levels.
If you experience any issues or require further assistance, please contact the OSL Global Support Team through the app, platform, or by emailing [email protected]