How to calculate the cost price of position replenishment in the currency circle

The calculation formula of the cost price of the currency circle position replenishment is: (original position cost, original position quantity + replenishment cost, replenishment quantity) / (original position quantity + replenishment quantity). The steps include determining the original position cost, original position quantity, replenishment cost and replenishment quantity. Then just plug the values ​​into the formula.

Coin Circle Cover-up Cost Price Calculation

When trading in the Currency Circle, sometimes it is necessary to cover the position. The calculation of the cost price of covering a position is crucial because it will affect the trader's overall profit and loss.

Calculation method of cost price of position replenishment:

Cost price of position replenishment = (original position cost original position quantity + replenishment cost replenishment quantity)/(original position quantity + replenishment quantity)

Detailed steps:

1. Determine the original holding cost: This is the average price at which you previously purchased the asset.
2. Determine the original position quantity: This is the number of assets you currently hold.
3. Determine the cost to cover your position: This is the price you pay when you buy more of the asset.
4. Determine the replenishment quantity: This is the quantity of your newly purchased assets.
5. Put all values ​​into the formula: Calculate the cost price of position replenishment based on the above formula.

Example:

Suppose you hold 10 BTC and its purchase cost is $10,000. You decide to purchase 5 more BTC at a cost of $12,000. According to this formula, your position replenishment cost price is:

Closing cost price = (10,000 USD 10 pcs + 12,000 USD 5 pcs) / (10 pcs + 5 pcs)
= 11,000 USD

Therefore, your position replenishment cost Price is $11,000. This means you currently hold 15 BTC with an average purchase cost of $11,000.

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