Average Cost Calculator; Formula to Work Out Average Entry on Multiple Fills

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“His video trays. We look at how do you calculate your entry price on multiple multiple fills stay tuned hey you guys what welcome to so question here it seems simple. But i get it because when you re first trading. Some was a bit confusing.

The question is this if you are trading and you get multiple fills let s do our classical little chart here are your buying buying buying buying buying little bit here little bit they re scouting into the position. How do you calculate your break. Even price now generally speaking a broker is gonna do this folio and yes. We ll laziest traders.

We kind of a broker do lookup lot sir. And it says okay your average entry price is this it does the whole thing. But sometimes maybe you want to split up trades into sequences so to speak. So you might say okay.

I ve had 10 entries or 5 entries here. I ve had 5 entries. Here and i ve had 3 entries here and i m treating the most different trades. If your broker is gonna wrap them all up into the trade but for your reporting purposes.

You want to calculate that entry price that aggregate entry price and then that average entry price and treat them separately..


So it makes sense to think about how you do now for most people ok. This is a relatively simple thing to do. But you know for new traders. Out there if you re new trader.

You aren t me going okay. Well. How do i do it alright. So we ve got a scenario now let s say the markets come down.

And it s chugging down. And you know you ve had staggered out a load of boys and let s imagine you ve staggered out a load of bison. It s come down. And it s kind of done and let s say it s kind of moved up on back whatever.

It s done the point is these your outcomes. I see you ve done. 10 orders so you don t central the 10. Contracts 10 pounds of.

Point..


10 lots whatever okay we have 10000. Shares. Let s say you ve done so we re doing 10 in so. Let s see you bought to attend and let s say you bought another 3 11.

Say. And this would probably be more of your scaling on a stable 3 11. And he bought want to say. 12.

And another one at 10 and then you bought your last three 15 okay so those your fills on your plots. You ve done all those and you ve got all those so. And what do you do i only work out your average for every price for one way of doing. It is to say okay well how many have i got in total well.

I ve got three done at ten several over here. I ve got three at ten. And that s equal to 30. And i ve got a 311.

So that s equal to 33 and i ve got one at 12 which equals..


12. Obviously and i ve got 350 which is equal to 45 30. 33 1245 is a hundred and twenty. And if i divide that by ten because that s my total three six nine ten and over ten lots then my average is ten lots at a total of on average of twelve.

So i can work out on that chart if you wanted to do it that way that hey my average entry is here regardless of where i ve bought and that s what i m going to work from so yeah. Whilst they say that the broker will probably do all that kind of stuff for you in an aggregator. If you kind of bought a cluster here came up a newborn of a bit on a pullback etc. You ve got on multiple positions.

But you want to treat that as a salt position that would be the kind of benefit of this you will okay. That s position one that s position two that s position three it s on a screen. I can t do it here so i ll just do an example guys of what i actually mean so. Let s say you ve bought here.

It s gone up. It s pulled back a bit gone done this pull back a bit to here. You know that would be position. One which is all your scaling scaling in here that could be positioned too.

And then that could be positioned three just for kind of hypothetical example dubrow called echo gate..


All of those name might be in the forties. They might be in the 50s. But you want to split them out for your own reporting purposes. And for notional of strategies.

Working well by saying. Okay well that s trade one okay well in trade one a scaled in i did all this so my average entry is tell them at twelve you know was this and every different numbers. My average entry is you know seven units at 32. And what have you and so when you scale now you can say well i m gonna scale out you know my last one first or however you out to report is well with this fifo or lifo first in first out or first in last out file.

Oh you can choose how to do it. And that a little bit more control. So if that s very quick video guys hopefully. That s helped out if you re someone who s does a lot of scaling a lot of orders around a kind of entry point or an area to do business and wants to kind of have a one way of doing it there are other ways of doing it.

But one way of doing it that kind of works. Okay if you ve got to do some mental arithmetic or to stick into a calculator doesn t matter guys who cares as long as you get the number out and that s one way of doing it alright guys thank you how you calculate your entry price on multiple fills bye bye. ” ..

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