Your average price after adding
What the second order does to the price of the whole position, and to how much is now riding on it.
Your numbers
What that gives you
Your average price now
₹225
Total money in the position
₹45,000
- Total quantity
- 200
Nothing you type here is saved, sent anywhere, or used for anything else. Close the tab and it is gone.
How this works
The average comes down, which is the part people look at. The amount of money in the position goes up, which is the part that decides what the next move is worth to you.
Both numbers are shown together because reading only the first one is how a position gets larger than anyone intended.
A scale-in you decided on before entering and an add you made because the price fell are the same arithmetic. They are not the same decision, and only your own record knows which this was.
Questions people ask
- Does a lower average mean I need a smaller move to get out level?
- Yes, in points. But you now hold more, so the money at stake for each point is larger. The smaller move is on a bigger position.
This one connects to
You add more to a trade that is already losing
What this does not say: This works out an average from numbers you typed. It does not say whether adding was a good idea, and it has no view on any price.