The average is weighted by quantity, not by price
Fills at 50,000 and 46,000 USDT average to the midpoint, 48,000 USDT, only when their quantities are equal; if the second fill is larger, the average sits closer to 46,000. The average entry an exchange displays is worked out the same way: each add puts the new fill's notional into the total, which is divided by the total quantity.
The average is the starting point for unrealized PnL, the liquidation price and the break-even price. Setting a stop or take-profit from the wrong average — a simple mean of the fill prices, say — shifts the whole risk plan.
Break-even after fees
Every fill paid an opening fee and the exit pays another, so to avoid a loss a long must exit above its average and a short below it. With 0.05% on each side, break-even sits about 0.1% beyond the average.
This break-even leaves funding out. If the position will cross several settlements, use the PnL calculator to include funding as well.
How much to add to reach a target average
Say the position holds quantity Q at average A, and you plan to add at price P so the average becomes T. After adding q the average is (A × Q + P × q) ÷ (Q + q); setting that equal to T gives the quantity to add.
The target must lie between the add price and the current average: a long can pull its average down only with fills below it, and never all the way to the add price itself. The closer the target is to the add price, the more it takes. The table builds on the example below: 0.2 BTC at an average of 48,000 USDT, adding at 45,000 USDT.
| Target average (USDT) | Add (BTC) | Total after (BTC) | Notional after (USDT) |
|---|---|---|---|
| 47,000 | 0.1 | 0.3 | 14,100 |
| 46,500 | 0.2 | 0.4 | 18,600 |
| 46,000 | 0.4 | 0.6 | 27,600 |
| 45,500 | 1.0 | 1.2 | 54,600 |
Three checks before adding
Averaging down does not reduce risk; it enlarges the position. In the table's last row the notional grows from 9,600 to 54,600 USDT, so the same further fall now loses more than five times as much. In isolated margin the added quantity needs new margin; in cross margin it draws on the wallet balance, and liquidation can end up closer, not further.
Before adding, write down where the strategy is proven wrong, whether the maximum loss after the add still fits the risk budget, and where the liquidation price lands once the new average and quantity go into the liquidation calculator. If any of the three has no answer, do not add yet.
- Enter the new average and total quantity in the liquidation calculator to re-estimate liquidation.
- A larger notional can move the position into a higher maintenance-margin tier.
- Make sure every fill is in the same contract and direction; in hedge mode, average longs and shorts separately.
Why the exchange's average can differ
As a rule only adding changes the average entry; closing part of a position changes the quantity and the realized PnL, and the remaining position usually keeps its average. If the account shows a different average, check for partial closes, that the fills belong to the same contract, and that the trade history is complete.
The average entry an exchange shows is worked out from fill prices alone, without fees, which appear in the trade history or realized PnL. That is why this tool gives a separate break-even after fees.
Worked example
Reproducible example: a BTCUSDT long entered in two parts
Buy 0.1 BTC at 50,000 USDT, then another 0.1 BTC after a fall to 46,000 USDT, with 0.05% fees on each side and 10× leverage. Next, plan an add at 45,000 USDT to bring the average to 46,500 USDT.
- Input
- Fill 1: 50,000 USDT × 0.1 BTC
- Input
- Fill 2: 46,000 USDT × 0.1 BTC
- Input
- Fee 0.05% each side (example rate), leverage 10×
- Input
- Planned add at 45,000 USDT, target average 46,500 USDT
- Step 1
- Average = (50,000 × 0.1 + 46,000 × 0.1) ÷ 0.2 = 9,600 ÷ 0.2 = 48,000 USDT
- Step 2
- Break-even = 48,000 × 1.0005 ÷ 0.9995 = 48,048.02 USDT
- Step 3
- Margin used = 9,600 ÷ 10 = 960 USDT
- Step 4
- Quantity to add = 0.2 × (48,000 − 46,500) ÷ (46,500 − 45,000) = 0.2 BTC
- Step 5
- Notional after = 9,600 + 0.2 × 45,000 = 18,600 USDT, margin used 1,860 USDT
The average is 48,000 USDT and the position makes money only above an exit of 48,048.02 USDT; adding 0.2 BTC at 45,000 USDT brings the average to 46,500 USDT and doubles the notional to 18,600 USDT.
The fee rate is an example value, and the lower average comes with a larger position. Before adding, enter the new average and total quantity in the liquidation calculator and check the liquidation price is still one you can live with.
Frequently asked questions
Is averaging down the same as adding to a position?
In futures trading usually yes: adding at a better price after the market moved against the position, pulling the average in its favour. It brings break-even closer to the market at the cost of a larger, more concentrated position.
Does the tool work for shorts?
Yes. A short adds as price rises, which moves its average up, and choosing short puts break-even below the average. Shorting 0.1 BTC at 50,000 and 0.1 BTC at 54,000 USDT averages 52,000 USDT, with break-even at 51,948.03 USDT after 0.05% fees on each side.
Does the average include fees?
The average entry an exchange displays is usually from fill prices only, without fees. This tool gives a separate break-even after fees so you can set an exit that does not lose money.
Why can't the target be below the add price?
The add price is the limit the average can approach: however much is added at 45,000 USDT, the average only approaches 45,000 and never goes lower. The target has to lie between the add price and the current average.
What happens to liquidation after adding?
The notional grows. In isolated margin the added quantity needs new margin and liquidation is recalculated on the combined margin; in cross margin it depends on whether the wallet balance can carry the larger position. Enter the new average and total quantity in the liquidation calculator to estimate it.
Evidence
Official sources and checks
Each formula and exchange rule links to the official documentation, so you can check it yourself.
Unrealized PnL and the liquidation estimate both use the average open price
Recorded: 2026-10-07Each fill pays a fee on the position value at its execution price
Recorded: 2026-10-07Liquidation is computed from the position's entry price and size, so it changes after an add
Recorded: 2026-10-07
How this page was produced: Drafted with AI assistance · worked examples and links checked automatically before publishingLast updated