New average entry price
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A lower average is not a smaller risk

Averaging down shrinks the bounce you need but grows the position you hold. Pressure-test how many adds your account can survive on the DCA survival calculator, and re-check liquidation after the add on the liquidation price calculator.

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Your real entry price when you bought in multiple tranches

Average entry = total_cost ÷ total_units. Buy 0.5 BTC at $60,000 ($30,000) and 0.3 BTC at $45,000 ($13,500): total cost $43,500, total units 0.8 BTC, average entry $54,375. This is the price you need to exceed to be profitable, before fees.

The weighted average moves less than you'd expect with equal dollar amounts. Equal dollar amounts buy more units at lower prices, so the average pulls toward the lower buys. Equal unit amounts pull the average toward the middle regardless of dollar spent.

For futures with multiple adds: each entry at a different price creates a blended average that determines your overall liquidation price. Most exchanges show this in the position panel. If they don't, this calculator does the same math. Your stop-loss should be set relative to this average, not your first entry.

Related: average down, DCA calculator, weighted average entry.

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