How to calculate the cost of adding a position in the currency circle

The calculation of the cost of adding a position involves the following factors: current position cost, additional investment amount, current asset price and new position quantity. The formula for calculating the average cost of total positions is: [(Current position quantity Current position cost) + (New position quantity Current asset price)] / (Current position quantity + New position quantity).

Cost calculation of adding positions in the currency circle

In the currency circle, adding a position refers to the act of adding additional investment to purchase more of the same asset based on the established position. The following factors need to be considered when calculating the cost of adding a position:

1. Current holding cost

This refers to the average price you paid when you originally purchased the asset. The calculation formula is:

当前持仓成本 = 购买金额 / 购买数量

2. Additional investment amount

This is the amount you are prepared to use to increase your position.

3. Current asset price

This is the market price of the asset when you plan to add a position.

4. New position quantity

This is the number of new assets you purchase with the additional investment amount. The calculation formula is:

新持仓数量 = 追加投入金额 / 当前资产价格

5. Average cost of total positions after adding positions

This refers to the average purchase cost of all assets held after you add positions. The calculation formula is:

加仓后总持仓平均成本 = [(当前持仓数量 * 当前持仓成本) + (新持仓数量 * 当前资产价格)] / (当前持仓数量 + 新持仓数量)

Example:

Suppose you already hold 10 Bitcoins and the average purchase cost is $20,000. You want to add $5,000 to your position, and the price of Bitcoin at the time is $25,000.

Step 1: Calculate the current position cost

当前持仓成本 = 200,000 美元 / 10 = 20,000 美元

Step 2: Calculate the number of new positions

新持仓数量 = 5,000 美元 / 25,000 美元 = 0.2 个比特币

Step 3: Calculate the average cost of the total position after adding the position

加仓后总持仓平均成本 = [(10 * 20,000) + (0.2 * 25,000)] / (10 + 0.2) = 19,980 美元

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