Futures

Bitget futures: How to calculate your average entry price

2025-04-30 09:4809

Accurately calculating your average entry price is essential for effective position management and risk control in Bitget futures trading. This guide walks you through how to calculate the average entry price across different types of futures, including USDT-M perpetual futures, USDC-M perpetual futures, and inverse perpetual and delivery futures. Key terms are also explained to help you better understand the mechanics of futures trading.

USDT-M perpetual futures

USDT-M perpetual futures are linear futures that use USDT as both the margin and settlement currency. They are widely used on the Bitget futures platform. The average entry price is calculated using the weighted average of each opening trade:

Average entry price = (∑(entry price of each trade × quantity of each trade)) ÷ total position size

Example:

You open the following long positions in BTCUSDT perpetual futures:

First entry: Buy 0.1 BTC at the price of 30,000 USDT

Second entry: Buy 0.2 BTC at the price of 31,000 USDT

Calculation:

1. Total cost = (30,000 × 0.1) + (31,000 × 0.2) = 3000 + 6200 = 9200 USDT

2. Total quantity = 0.1 + 0.2 = 0.3 BTC

3. Average entry price = 9200 ÷ 0.3 = 30,666.67 USDT

USDC-M perpetual futures

USDC-M perpetual futures function the same way as USDT-M perpetual futures, except USDC is used as both the margin and settlement currency. Since USDC is also a stablecoin, the calculation method for the average entry price is identical:

Average entry price = (∑(entry price of each trade × quantity of each trade)) ÷ total position size

Example:

You open the following long positions in ETHUSDC perpetual futures:

First entry: Buy 1 ETH at the price of 2000 USDC

Second entry: Buy 1.5 ETH at the price of 2100 USDC

Calculation:

1. Total cost = (2000 × 1) + (2100 × 1.5) = 2000 + 3150 = 5150 USDC

2. Total quantity = 1 + 1.5 = 2.5 ETH

3. Average entry price = 5150 ÷ 2.5 = 2060 USDC

Inverse perpetual and delivery futures

Inverse futures (also known as Coin-M Futures) are denominated and settled in cryptocurrencies such as BTC or ETH. They come in two types: perpetual futures and delivery futures. The calculation of the entry price differs from that of linear futures, as the price is denominated in USD, while the position size is measured in the underlying asset. The formula is as follows:

Average entry price = total cost in USD ÷ total quantity in the underlying asset

Example (inverse perpetual futures):

You open two positions in BTCUSD perpetual futures:

First entry: Buy 100 futures at the price of 30,000 USD (Each futures is worth 100 USD, so the position size = 100 ÷ 30,000 = 0.003333 BTC)

Second entry: Buy 200 futures at the price of 31,000 USD (Position size = 200 ÷ 31,000 = 0.006452 BTC)

Calculation:

1. Total cost = (100 × 100) + (200 × 100) = 10,000 + 20,000 = 30,000 USD

2. Total quantity = (100 × 100 ÷ 30,000) + (200 × 100 ÷ 31,000) = 0.3333 + 0.6452 = 0.9785 BTC

3. Average entry price = 30,000 ÷ 0.9785 ≈ 30,658.16 USD

Key terms

To help you better understand futures trading, here are some commonly used terms:

Entry price: The price at which you open a position. If you open multiple positions, the system uses a weighted average, called the average entry price, to determine your PnL.

Margin: The amount of funds required to open a position. It includes initial margin and maintenance margin, which determine the leverage.

Leverage: A tool that lets you amplify your position size using borrowed funds. For example, 10× leverage means you control a position worth 10 times your margin.

Funding fee: A recurring payment exchanged between long and short traders in perpetual futures, usually every eight hours. It helps keep futures prices aligned with spot prices. See the Bitget funding rate page for details.

Mark price: A reference price used to calculate unrealized PnL and trigger liquidation. It's based on the index price and adjusted according to market depth to avoid manipulation.

Liquidation price: If the mark price hits this level, your position will be liquidated by the system to prevent further loss.

Index price: A weighted average of spot prices across major exchanges, used to ensure fair and accurate futures pricing.

Related articles

Bitget beginner's guide — Key futures trading terms and their application scenarios

Bitget beginner's guide — A comprehensive introduction to USDT-M Futures, USDC-M Futures, and Coin-M Futures

Bitget beginner's guide: Calculation of funding rates in futures trading