How does the mark price differ from the last price in the cryptocurrency market?

3 answers

• Nov 28, 2021 · 3 years ago
  The mark price in the cryptocurrency market refers to the price at which an asset is valued for margin trading purposes. It is calculated based on various factors such as the last traded price, order book depth, and funding rates. On the other hand, the last price simply refers to the price at which the most recent trade occurred. While the mark price is used for determining margin requirements and liquidation levels, the last price is more relevant for traders looking to execute immediate trades. Understanding the difference between these two prices is crucial for making informed trading decisions in the cryptocurrency market.
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• Nov 28, 2021 · 3 years ago
  The mark price and the last price in the cryptocurrency market serve different purposes. The mark price is used to calculate the funding rate for perpetual swap contracts and to determine the liquidation price for margin trading. It is designed to prevent market manipulation and ensure fair trading conditions. On the other hand, the last price represents the most recent transaction price. Traders often use the last price as a reference point for placing orders and analyzing market trends. While the mark price is more stable and less prone to manipulation, the last price can be influenced by market volatility and liquidity. Both prices play important roles in the cryptocurrency market and should be considered when making trading decisions.
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• Nov 28, 2021 · 3 years ago
  In the cryptocurrency market, the mark price and the last price are two different indicators used by traders to assess market conditions. The mark price is a calculated value that takes into account factors such as the last traded price, order book depth, and funding rates. It is used for determining margin requirements and liquidation levels in margin trading. On the other hand, the last price simply represents the price at which the most recent trade occurred. Traders often use the last price as a reference point for placing orders and analyzing market trends. While the mark price is more stable and less prone to manipulation, the last price can be influenced by market volatility and liquidity. Understanding the difference between these two prices can help traders make more informed decisions in the cryptocurrency market.
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