The Forex Calculator - Cost Averaging Plans
The Open Leg Cost Average tab is designed for traders who hold an overall position consisting of several trades at different entry points.
Here's an example: You went long the EURJPY and price moved against you – but not enough to stop you out. It then sets up at a lower price that still looks good for a buy and you place a second long trade, without having closed out your first trade. Both are still open. This is called 'open-leg cost averaging'.
Where is your break even price for this combined trade? Depending on your lot sizes for each leg (i.e., each trade order), it is somewhere between the two positions, and is shown on the Calculator as your break even price. This is also known as the 'average open price' for the combined trades.
If you continue to open additional trades within this set or group, you can dynamically add more legs as you need them.
If you place one stop loss to govern all the open trades, you can enter that price to see your potential drawdown. If you plan to use independent stop losses for each leg, you would instead use the Trade Plan tab of the Calculator to chart the profit and loss potential for that particular set of trades.
Once you know your exit, enter the actual price to quickly see your net effective pips, net profit or loss, and overall equity change.
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