Glossary
What is Index price
A weighted average of an asset's price across several spot exchanges; the futures mark price derives from it, so one venue's bad price cannot move liquidations.
How it works
Example
Three spot exchanges show 62,000, 62,100 and 62,300 with weights of 50, 30 and 20%. The index: 31,000 + 18,630 + 12,460 = 62,090.
Common mistake
Comparing the futures chart with some other spot chart and calling the gap manipulation: the futures contract has its own price, and the index is just the spot average.
Read next
Related terms
Frequently asked questions
- Where can I learn Index price step by step?
- In the Trading OS Academy: “How an exchange matches buyer and seller”.
- What is Index price related to?
- Mark price; Perpetual futures; Basis.
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