How to Calculate Average Entry Price in Futures After Scaling In
Calculate a futures position's weighted average entry after multiple entries, then reconcile partial exits, realized P&L, remaining exposure, fees, and daily settlement.
Direct answer
For several futures entries in the same contract and direction, use a quantity-weighted average of opening fills. Keep fees separate, and treat a partial exit as its own P&L event rather than blending it into the entry average.
Use quantity weighting for multiple entries
Suppose you buy 2 contracts at 5,000 and later buy 3 more at 5,010.
The weighted entry value is 2 × 5,000 + 3 × 5,010 = 25,030.
Divide by 5 contracts. The average entry price is 5,006.
A simple average of 5,000 and 5,010 would give 5,005, which is wrong because the second entry contains more contracts.
This arithmetic is a position summary. It does not replace the individual fills that remain important for execution review, fees, and statement reconciliation.
Why a futures order can fill at multiple prices covers several executions from one order. This guide covers separate additions to an existing position.
Check the average against lot-by-lot P&L
Assume the contract multiplier is $20 per point and the market later reaches 5,020.
Using the average, gross unrealized P&L is:
(5,020 − 5,006) × $20 × 5 = $1,400.
Now verify it lot by lot.
The first 2 contracts gained 20 points each: 20 × $20 × 2 = $800.
The next 3 gained 10 points each: 10 × $20 × 3 = $600.
The total is again $1,400.
The two methods agree because the weighted average preserves the same total price exposure before costs.
How to calculate futures profit and loss explains the multiplier and tick-value conversion.
A partial exit should not be folded into the entry average
Now suppose 2 of the 5 contracts are sold at 5,018.
The position falls from 5 contracts to 3. The sale is a closing transaction for 2 contracts, not a new entry that should be mixed into the opening average.
Under a position-level weighted-average view, gross realized P&L on those 2 contracts is:
(5,018 − 5,006) × $20 × 2 = $480.
If the remaining 3 contracts are marked at 5,020, their gross unrealized P&L is:
(5,020 − 5,006) × $20 × 3 = $840.
Realized plus unrealized is $1,320 before fees.
Lot matching can change the split, not the total economics
A broker or accounting system can match closing quantity to opening lots using a stated convention.
If the 2-contract exit is matched to the first 2 contracts at 5,000, realized P&L becomes:
(5,018 − 5,000) × $20 × 2 = $720.
The remaining 3 contracts entered at 5,010 then show:
(5,020 − 5,010) × $20 × 3 = $600 of unrealized P&L.
The combined amount is still $1,320 before costs.
The realized and unrealized labels can therefore differ by lot-matching convention even when total economic P&L is unchanged.
Do not infer the broker's tax or accounting method from a platform average-price field. Check the statement methodology that actually applies.
Daily settlement can make the screen look different
Futures are generally marked to market through daily settlement.
A platform can display an average entry for trade management while the account statement also records daily settlement variation in cash.
Those are different views of the same economic position. Do not add a displayed open P&L to settlement cash flows without checking whether the same price movement is already included.
Futures realized versus unrealized P&L explains why platform labels can differ from statement accounting. [!TRYMARK] Rebuild one scaled position List every entry fill, quantity, multiplier, fees, partial exit, and current mark. Calculate the weighted entry, then reconcile realized plus unrealized P&L both from the average and lot by lot.
Use a scaling-in checklist
Record the exact contract and month.
Keep every entry fill and quantity.
Calculate the weighted average only from opening trades that increase the same-direction position.
Keep closing trades separate.
Recalculate quantity after every partial exit.
Separate commissions, exchange fees, clearing fees, and measured slippage from the raw entry price.
Compare your calculation with the broker's statement, not only the chart or position widget.
If a trade flips the position from long to short or short to long, close the old position first in your worksheet and start a new average for the opposite direction.
This guide explains position arithmetic. It does not recommend adding to a losing or winning futures position.
Common questions
How do I calculate average entry price for futures?
Multiply each opening price by the number of contracts entered there, add the results, and divide by the total open quantity created by those entries.
Should commissions be included in average futures entry price?
For a raw exchange-price average, keep commissions and fees separate. You can calculate a separate net cost basis for internal analysis, but label it clearly so it is not confused with the actual fill-price average.
What happens to average entry price after a partial exit?
A partial exit reduces position size and creates realized P&L. A platform may keep, reset, or display the remaining average under its own convention, so use the individual fills and statement methodology for reconciliation.
Why does my broker's realized P&L differ from my average-price calculation?
The broker may use a specific lot-matching convention, daily settlement entries, fees, or another reporting method. Reconcile the exact fills, quantity, multiplier, settlement records, and charges before calling the difference an error.