How is the opening and closing price of a position calculated?

The opening and closing price of a position is calculated as the current market price which reflects buy and sell orders on the exchange. Accordingly, it depends not only on price levels, but also on the volume of executed transactions.

Example of how the opening price is calculated

Let’s assume that the following orders have been placed on the exchange:

  • Sell 5 BTC at PLN 2100 (= PLN 10500).
  • Sell 1 BTC at PLN 2050 (= PLN 2050).
  • Sell 0.2 BTC at PLN 2010 (= PLN 402).
  • Buy 0.2 BTC at PLN 1990 (= PLN 398).
  • Buy 1 BTC at PLN 1950 (= PLN 1950).
  • Buy 5 BTC at PLN 1900 (= PLN 9500).

If you are opening a long position for PLN 1000, which requires you to buy bitcoins for this amount, then to open your position:

  • You buy 0.2 BTC at PLN 2010, which works out to PLN 402.
  • You buy 0.29170731 BTC at PLN 2050, which works out to PLN 598 – for the total of PLN 1000.

The opening price of your position will therefore be PLN 1000/0.49170731 BTC = PLN 2033.7301.

Similarly, if you are opening a long position for PLN 10000, then to open your position:

  • You buy 0.2 BTC at PLN 2010, which works out to PLN 402.
  • You buy 1 BTC at PLN 2050, which works out to PLN 2050.
  • You buy 3.59428571 BTC at PLN 2100, which works out to PLN 7548 – for the total of PLN 10000.

The opening price of your position will therefore be PLN 10000/4.79428571 BTC = PLN 2085.8164.

Example of how the closing price is calculated

If, assuming the above-mentioned orders on the exchange, you decide to close a long position, i.e. sell bitcoins in order to pay off the borrowed sum in PLN, then to close a long position of PLN 1000:

  • You sell 0.2 BTC at PLN 1990, which works out to PLN 398.
  • You buy 0.30871795 BTC at PLN 1950, which works out to PLN 602 – for the total of PLN 1000.

The closing price of your position will therefore be PLN 1000/0.50871795 BTC = PLN 1965.7258.

Similarly, if you are closing a long position of PLN 10000:

  • You sell 0.2 BTC at PLN 1990, which works out to PLN 398.
  • You sell 1 BTC at PLN 1950, which works out to PLN 1950.
  • You sell 4.02736842 BTC at PLN 1900, which works out to PLN 7652.

The closing price of your position will therefore be PLN 10000/5.22736842 BTC = PLN 1913.0085.

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