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Average Price
Average price of an asset over multiple trades or timeframes.
Beginner-friendly explanation
Average price is the average amount you paid for an asset if you bought it in multiple steps. It tells you what your investment really cost overall.
Intermediate-level insight
In trading, average price tracks the real performance of a position. It’s essential to calculate your break-even point, compare entries, or manage strategies like DCA.
Advanced perspective
Experienced traders use weighted averages such as: VWAP (volume-weighted average price); moving averages across various timeframes. These tools help optimize entries/exits, timing, and market movement clarity. In complex portfolios, average price becomes a dynamic variable that must be monitored closely.
Trading Basics
average price, mean price, DCA, VWAP, moving average, performance, break-even
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