Glossary

What is Mark price

A price averaged across several exchanges used for unrealised PnL and liquidation. It protects you from being liquidated by one stray print.

How it works

Example

The last trade on the exchange printed 62,400, while the mark price is 62,560. Liquidation is checked against 62,560.

Common mistake

Setting a stop on mark price and not understanding why it fired later than the last price.

Read next

Frequently asked questions

Where can I learn Mark price step by step?
In the Trading OS Academy: “Leverage is sizing, not greed”.
What is Mark price related to?
Liquidation; Perpetual futures.

Plan versus outcome — for every trade

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