How to Calculate Average Entry Price
Perpetual Contract
This section explains how to calculate the average entry price for different types of derivatives on XT.
USDT Perpetual Futures
USDT perpetual futures are quoted and settled in USDT or equivalent cryptocurrencies.
Formula:
Avg. Entry Price=Total Position Value ÷ Total Futures Quantity
Total Position Value = [(Trade Price 1 × Futures Quantity 1) + (Trade Price 2 × Futures Quantity 2) + (Trade Price 3 × Futures Quantity 3) …]
Example – BTCUSDT: A trader buys 1 BTC futures at 10,000 USDT and 2 BTC futures at 13,000 USDT.
Avg. Entry Price=(1×10,000+2×13,000)/(1+2)=12,000 USDT
USDC Perpetual Futures
The average entry price for USDC perpetual futures is calculated based on positions opened within the current settlement cycle and is affected by additional position openings. At the end of each settlement cycle, the mark price at settlement becomes the new average entry price.
Formula:
Avg. Entry Price During Trading Period = Total Position Value ÷ Total Futures Quantity
Total Position Value = [(Trade Price 1 × Futures Quantity 1) + (Trade Price 2 × Futures Quantity 2) + …]
Example: Trader A holds a long position of 0.5 BTC at an entry price of 50,000 USDC. Believing BTC will rise, the trader adds another 0.8 BTC at 51,000 USDC.
Total Position Value=(50,000×0.5)+(51,000×0.8)=65,800 USDC
Avg. Entry Price=65,800/(0.5+0.8)=50,615.38 USDC
Coin-M Perpetual Futures
Coin-M (inverse) perpetual futures are quoted in USD but settled in cryptocurrencies such as BTC.
Formula:
Avg. Entry Price = Total Futures Quantity ÷ Total Futures Value
Total Futures Value = [(Futures Quantity 1 ÷ Price 1) + (Futures Quantity 2 ÷ Price 2) + (Futures Quantity 3 ÷ Price 3) …]
Example – BTCUSD: A trader buys 50 futures at 10,000 USD and another 50 futures at 15,000 USD.
Total BTC Value=(50/10,000)+(50/15,000)=0.00833333 BTC
Avg. Entry Price=100/0.00833333=12,000 USD