About

Complex trading strategies in Forex, Crypto, and Commodities often involve scaling into a position via multiple orders rather than a single lump-sum entry. This technique, known as "laddering" or "scaling in," helps mitigate timing risk but complicates the calculation of the aggregate break-even price. Traders must know the precise weighted average of all active orders to manage risk effectively.

This tool addresses the needs of active traders by supporting both Long (Buy) and Short (Sell) directions. Unlike simple average calculators, it aggregates an unlimited number of partial fills or distinct orders. It determines the total capital committed and calculates the percentage move required for the market price to reach the position's break-even point.

Formulas

The Average Entry Price (P_avg) is the total value of all contracts divided by the total quantity. For n individual orders:

P_avg = n∑i=1 (Q_i × P_i)n∑i=1 Q_i

The Distance to Break-Even (D) measures how far the Current Market Price (P_mkt) is from your average entry.

For Long: D = P_avg − P_mktP_mkt × 100%

Reference Data

Strategy	Entries	Price Action	Resulting Avg
Scaling In (Long)	3 Buys	Price Drops	Lower Avg (Better Entry)
Pyramiding (Long)	3 Buys	Price Rises	Higher Avg (Adding to winners)
Short Selling	2 Sells	Price Rises	Higher Avg (Better Entry for Short)
Martingale	Doubling Size	Adverse Move	Avg moves closer to current price quickly
Grid Trading	10+ Orders	Range Bound	Avg centers in the grid range

Frequently Asked Questions

Yes. Switch the calculator to "Short" mode. The logic remains the weighted average of entry prices, but the "Distance to Profit" calculation inverts because short sellers profit when prices drop.

Absolutely. It works for stocks (shares), crypto (coins), forex (lots), or commodities (contracts). The math of weighted averages is universal across these markets.

This percentage shows how much the market price needs to move to reach your break-even point. A positive distance means you are currently in a loss and price must move against the trend to recover. A negative distance implies you are already in profit.

While exchanges show this, they often delay updates or average it differently (e.g., across closed positions). A manual calculator allows you to model "What If" scenarios before actually placing the orders.