In USDT-M Perpetual Trading, when a few orders are in the same symbols with the same direction, the orders will be merged into one position, even if they open at different timings. Hence, the system will calculate the average entry price based on the entry price of all orders for the position and also the liquidation price.In Copy Trading, the average entry price, liquidation price, and all other details can be viewed from the My Copy Trading page.
Before our recent update, when a user closes a position or even partially closes the position, the system will always use the order entry price to calculate the user's final P&L, trader's profit sharing of a trade. After the updates, the system will always use the average entry price rather than the order price to calculate the user's final P&L, and profit sharing.
For example, suppose a user opens two long orders in BTCUSDT with the same quantity, with an entry price of 90,000 USDT and 100,000 USDT, respectively. The system will amalgamate these two orders into one position and calculate a new average entry price of 95,000 USDT [(90,000 + 100,000) / 2]. When the user closes the position, the system will use the average entry price of 95,000 USDT to determine the user's P&L, final equity, and available balance, rather than the individual order entry prices of 90,000 USDT and 100,000 USDT.
Below is an illustration of how to determine your Copy Trading transactions, P&L, and equity.
Beginning of a Trade
A trader has opened two positions of 0.3 and 0.2 YFI long positions with an entry price of 10,069.39 and 10,070.60.
He can check his position from the YFIUSDT trading page and My Copy Trading page.
And the entry price of the two trades will be merged to the Average Entry Price of 10,069.87 ((10069.38 * 0.3 + 10070.60*0.2)/0.5)
Partial Closure of a Trade
This user decided to partially close 0.1 of their 0.2 YFI order.
Since no new position was created, the average opening price of the lead trade remains at 10,069.87. At this time, the position has 0.4 YFI remaining.
Increase Position Size
After the market started to recover, he remained bullish on YFI and therefore opened a third order with an opening price of 10,072.34.
At this point, the average opening price of all three orders will be updated to 10,071.24 (calculated as: (10069.87 * 0.4 + 10072.34 * 0.5) / (0.4 + 0.5)).
Closure of the Entire Position
The price continued to rise, and this user decided to close all positions.
The closing price for the 0.3 position and the 0.5 position was 10,999.94.
The data for the three lead trades are as follows:
Lead Trade 1
- Volume: 0.3
- Average Opening Price: 10,071.24
- Average Closing Price: 10,999.94
Lead Trade 2
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Volume: 0.2
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Average Opening Price: 10,070.55
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Average Closing Price: 10,527.47(Average Opening Price Calculation: (10,069.87 * 0.1 + 10,071.24 * 0.1) / 0.2 = 10,070.55)
Lead Trade 3
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Volume: 0.5
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Average Opening Price: 10,071.24
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Average Closing Price: 10,999.94
The user can see the changes in the average transaction price of different lead trades on the position history page.
Please Note:
- Currently, this feature is available only to whitelisted traders. If you'd like to use the Merge Position function, please contact your BD or online customer service to have it enabled.