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  2. /Glossary
  3. /Mark Price
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trading

Mark Price

A calculated fair price used by exchanges to prevent unnecessary liquidations from short-term price manipulation.

Definition

A calculated fair price used by exchanges to prevent unnecessary liquidations from short-term price manipulation. The mark price typically combines the spot price from multiple exchanges with a moving average. Your liquidation price is based on the mark price, not the last traded price.

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Related Terms

Liquidation

When a borrower's collateral is forcibly sold because their position became too risky.

Perpetual Swap

A derivative contract similar to futures but with no expiration date.

Funding Rate

A periodic payment between long and short traders in perpetual futures markets that keeps the contract price close to spot price.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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