Definition
Average entry price is a trading metric that shows the average cost paid for each unit of a cryptocurrency in an open or closed position. It is found by adding together the total amount spent on all buy trades for that asset and dividing by the total number of units bought. This value represents the effective price level at which the position was entered overall, rather than focusing on any single trade. It is commonly used to understand whether a position is currently in profit or at a loss relative to the market price.
In Simple Terms
Average entry price is the single number that sums up what a trader has really paid, on average, for a coin or token. Instead of looking at many different buy prices, it blends them into one easy reference point. This makes it simpler to see how the current market price compares with the trader’s overall cost basis for that position.
Context and Usage
In crypto trading, average entry price helps describe the cost basis of a position when it has been built using multiple buys at different prices. It is often displayed in trading dashboards and portfolio trackers as a key reference for evaluating performance. Traders and analysts use it as a neutral benchmark to discuss where a position effectively began, independent of short-term price moves or individual trade details.