What is Mark Price?
Mark Price refers to an estimated true value of a contract. Also known as “marking-to-market,” it takes into consideration the fair value of an asset to prevent unnecessary liquidations during a volatile market. On Coinlocally Futures, the Mark Price of a contract is calculated as an average of its Last Price and the underlying asset’s Spot Price to avoid price manipulation of a single order book or exchange. It balances and smoothed out abnormal price fluctuations during times of high volatility. The Mark Price is used as a reference point for: Liquidations and Unrealized PNL
- Mark Price = Used to trigger liquidation
Click here to see more information : https://futuresdoc.gitbook.io/help-center/perpetual/overview/mark-price
What is Last Price?
Last Price refers to the latest trade price of the futures contract. In other words, the last trade of a particular contract defines its Last Price. A Perpetual contract, such as the BTCBUSD, derives its value from the underlying asset, which, in this case, is Bitcoin. These contracts have their own supply and demand volumes as traders constantly buy and sell them on Coinlocally Futures. This may create a unique price for the BTCBUSD contract, which may be different from the spot price of BTC. Thus, the Last Price of a futures contract could gradually deviate from the actual price of the underlying asset being traded in the spot market. Higher trading volumes in the Futures market further boost the inconsistency in prices. To create a more stable and reliable price structure for Futures Perpetual Contracts, Coinlocally Futures relies on Mark Price.
- Last Traded Price (Default option) = Represents the platform's latest trading prices when executing Buy Long or Sell Shorts orders placed by traders.
What is Index price?
The index price is the sum of the Spot prices of the top four Spot exchanges by trading volume, multiplied by the respective weights of the Spot exchanges.
- Index Price = Represents the market consensus price of the underlying asset. It's derived from a weighted average of multiple spot exchange quotes, adjusted by data usability and weight adjustment factors.
Click here to see more information : https://futuresdoc.gitbook.io/help-center/perpetual/overview/index-price
How can I see my Index and Mark Price?
You can find the trading rules, including your Index and Mark Price and other important information, from the link below:
https://futures.coinlocally.com/en_US/futuresData
What are the Differences Between Mark Price and Last Price?
Mark Price is not used in the actual trading and can be regarded as an indicator that monitors a position’s risk, while the Last Price is the essential market price that every user trade on. For example, the Mark Price is like the average price of gasoline in the whole country, whereas the Last Price is the price of a gallon you pay at a specific gas station close to where you live.
Note:
- Users come across two different prices when trading on Coinlocally Futures: Last Price and Mark Price.
- Last Price is the latest trade price of a contract and Mark Price is the estimated fair value of a contract.
- To avoid unnecessary liquidations in a volatile market and prevent price manipulation, Coinlocally Futures uses Mark Price as a reference in liquidation.
- Mark Price only affects the Liquidation Price and Unrealized PNL, and does not affect Realized PNL.
- Update Frequency: Every 5 seconds