Average Entry Calculator

How averaging works

When you buy into the same market at different prices, your effective entry is the weighted average — the total you spent divided by the total number of contracts. Buy 100 at 40¢ and another 100 at 50¢, and you have spent $90 for 200 contracts, an average of 45¢. That average is also your break-even price: the market has to be worth at least 45¢ for you to be in profit.

Averaging up and down

Adding at a lower price than your average pulls your entry down and lowers your break-even; adding at a higher price pushes it up. Averaging down can improve a position, but only if your original reason for the trade still holds — throwing more money at a market simply because it fell is a classic mistake. Keep every addition within your bankroll limits. To value the position once you have an average, use the P&L calculator, and to check the trade still has an edge, the EV calculator.

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Frequently asked questions

How do I calculate my average entry price?

Divide the total amount you spent by the total number of contracts. Buy 100 at 40 cents and 100 at 50 cents, and you have spent $90 for 200 contracts, an average entry of 45 cents.

Is average entry the same as break-even?

Yes. Your weighted average entry price is also your break-even price — the market has to be worth at least that much for the position to be in profit, before any fees.

Should I average down?

Adding at a lower price pulls your average and break-even down, which can improve a position — but only if your original reason for the trade still holds. Adding just because a market fell is a common mistake, so keep every addition within your bankroll limits.