The word of the day is AVERAGE.
📈 In the context of trading (including Margin Trading):
1. Average Entry Price:
If you buy a coin at different times and prices, the "average" is the average price you paid in total.
Example:
• Purchase 1: 1 BTC at $30,000
• Purchase 2: 1 BTC at $40,000
• Average: (30,000 + 40,000) / 2 = $35,000
2. Used to adjust positions:
Many traders engage in what is called "dollar-cost averaging" (DCA) — buying a fixed amount at regular intervals, regardless of the price, to reduce the impact of volatility.
