As the title suggest, i wanted to understand what are the differences between managing the trading positions/orders individually rather than using the average price for buy and sell. There could be some typo so feel free to point it out to me if you notice it.
===== Example 1: Exchange give the user the ability to handle trade position individually
Operation 1: BUY 5 ADA at 0,50 usd
Operation 2: BUY 5 ADA at 1,00 usd
Operation 3: BUY 5 ADA at 1,50 usd
- Close Operation 2 and 3
SELL 5 ADA at 2,00 usd = 10 usd
BOUGTH 5 ADA at 1,00 = 5 usd
Gains = 5 usd
total capital for this position = 10 usd
SELL 5 ADA at 2,00 = 10 usd
BOUGHT 5 ADA at 1,50 = 7,5 usd
Gains = 2,5 usd
total capital for this position = 10 usd
- Leave Operation 1 open
SELL 5 ADA * 2,00 = 10 usd
BOUGHT 5 ADA * 0,5 = 2,5 usd
Gains: 7,5 usd
potential total gain = 7,5 + 7,5 = 15 usd
======= Example 2: Exchanges give user the ability to handle position based on average price
Operation 1: BUY 5 ADA at 0,50 usd
Operation 2: BUY 5 ADA at 1,00 usd
Operation 3: BUY 5 ADA at 1,50 usd
- Close Operations for 10 ADA based on average price
Average Price: 1,5 usd
SELL 5 + 5 ADA at 2,0 = 20 usd
BOUGHT 5 + 5 ADA at 1,5 = 15 usd
Gains = 5 usd
- Don't sell last 5 ADA but calculate its potential gain
SELL 5 ADA * 2,00 = 10 usd
BOUGHT 5 ADA * 1,5 = 7,5 usd
Gains: 2,5 usd
potential total gain = 5 + 2,5 = 7,5 usd
- Conclusion
From what i have calculated (if i didn't do any mistake), we have a potential gain of 15 usd if the exchange offered us the opportunity to manage every single operation separately and a potential gain of 7,5 usd when we handle the operation with average price as all the exchange are currently doing.
Why there is no Exchanhe platform that offer us the ability to manage our positions individually?
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