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Example: Cost-Average

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Here is an example of using the Break Even tab of the Advanced Calculator to plan for a net-positive cost average trade.

Over the course of two or more trades we are going short, but our net overall position is actually composed of individual trades where one trade stops out and then the next trade is placed – so these are called “Closed-leg cost average trades“.

There is also a kind of trade we call “Open-leg cost averaging” – for more information about that, please see this article. In those trades the additional legs are placed while the earlier legs are still open. The Forex Smart Tools Advanced Calculator uses a different tab called Open CA to plan those trades.

In this video we are using the Forex Tester simulator to demonstrate the trade setup.

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