Main Takeaways
Familiarizing yourself with Margin trading parameters and tools like Average Price, Trade Analysis, Entry Price and Adjusted Entry Price is vital for evaluating trade performance on Binance Margin.
Trade Analysis helps track total buy/sell amounts and average prices, providing clarity on your trading performance over a period of time.
Mastering these key Binance Margin tools can enhance a trader’s ability to make informed decisions and improve trading outcomes.
Looking to level up your trading game on Binance Margin? In this guide, we will introduce you to some of our key Binance Margin tools, intuitively designed to help you track essential trade parameters and enhance your platform experience.
Understanding Key Margin Trading Tools
Margin trading can be complex, with many variables contributing to the success of each individual trade. Fortunately, Binance offers a range of tools to help you better assess how your trades are doing. Below are the key parameters and some of their relevant features:
What is the Average Price?
On Binance Margin, the Average Price represents the mean price of a token observed over a given period of time. Calculated at the pair level for buy and sell orders independently, it allows traders to assess their Profit and Loss (PNL) effectively for the specific pair(s) they are trading.
The formula for calculating the Average Price is simple:
Average Price = Total Position Cost / Position
Position Cost: The purchase cost of the quote token when you are in a long position, or the proceeds from selling the quote token in a short position.
Position: The amount of the token you receive from your buy (in a long position) or sell (in a short position).
For example, if you have made several BTC/USDC trades over 30 days, your Average Buy Price may look like this:
Your Average Buy Price for this period would be:
Average Buy Price = ($62,000 + $63,500 + $61,000) / 3 = $62,166.667
Your Average Sell Price for this period would be:
Average Sell Price = ($64,000 + $62,500) / 2 = $63,250
On Binance Margin, you can calculate this parameter for time periods ranging from 30 to 365 days, allowing you to gain a comprehensive understanding of your assets’ performance over both short-term and long-term.
How to access Average Price on Binance?
1. Log in to your Binance account and go to [Trade] - [Margin].
2. On the K-line chart, click [Settings], then select [Average Price]. In the pop-up window, you may choose your preferred display of time periods for Buy and/or Sell Average Prices.
What is Trade Analysis?
The Trade Analysis tool provides comprehensive insights into users’ trading performance. This feature allows traders to evaluate total buy/sell amounts, average buy/sell prices, and other essential metrics, helping them to better understand how well their trades are performing over specific periods.
To effectively manage one’s trading performance, understanding how to calculate the Current Position, Total Position, and Average Position Price is crucial.
Current Position
Current Position = Total Buy Amount - Total Sell Amount of the Base Token
Note: The Current Position does not reflect the current balance of your Margin account.
Total Position
Total Position = Total Buy Amount - Total Sell Amount of the Quote Token
Average Position Price
Average Position Price = Total Position Cost / Position
For more details, please refer to this FAQ: “How to View My Wallet PNL and Trade Analysis on Binance Margin.”
How to use Trade Analysis?
Go to [Orders] - [Margin Order] and select the [Trade History] tab.
Click on the [Trade Analysis] icon at the top right corner to access your analysis tab.
Cross Margin Entry Price
Cross Margin Entry Price is a key metric in a Cross Margin account, allowing users to trade the same base tokens with different quote tokens. In this scenario, Entry Price or Adjusted Entry price can be a valuable tool to strengthen your token analysis.
Entry Price is the weighted average price of assets in your Margin account, which include assets that were transferred in/out and assets that were purchased/sold.
For Long Positions, only transfer-ins and buy orders are counted.
For Short Positions, only transfer-outs and sell orders are counted.
Cross Margin Adjusted Entry Price
Cross Margin Adjusted Entry Price reflects the price of a trader’s position after taking into account the profit and loss from all trades. The main difference between Adjusted Entry Price and Entry Price is that Adjusted Entry Price accounts for all capital flows, including buys, sells, and transfers in and out. In contrast, Entry Price only considers one-directional flows based on long and short positions. Here is how Adjusted Entry Price is calculated:
Adjusted Entry Price = (Total Buys + Transfer-Ins - Total Sells - Transfer-Outs) / Positions
Below is an illustration of how Entry Price and Adjusted Entry Price work. This example uses BNB as the base token, with the USDT benchmark. Interest and trading fees are excluded.
Note: In long positions, sell orders are not included in Entry Price calculations, but they are factored in for Adjusted Entry Price.
For more information regarding Entry Price and Adjusted Entry Price, please refer to this FAQ “Introduction to Margin Position Parameters.”
Final Thoughts
Mastering the key parameters and tools available on Binance Margin, such as Average Price, Trade Analysis, Entry Price, and Adjusted Entry Price, is essential for any trader looking to optimize their performance. By leveraging these tools, traders can gain a clearer understanding of their trading activities, make more informed decisions, and ultimately improve their margin trading outcomes.
Whether you are tracking your average buy/sell prices or analyzing your overall trade performance, these features provide the insights needed to effectively navigate the complexities of margin trading.
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