What Is Mark Price?
A smoothed reference price, usually derived from spot indexes across several exchanges, used to calculate unrealized profit and trigger liquidations. Exchanges use mark price instead of the last traded price to prevent manipulation induced liquidations.
Related Terms
- Liquidation The forced closure of a leveraged position when your margin can no longer cover the losses.
- Index Price The volume weighted average spot price of an asset across major exchanges.
- Perpetual Futures A futures contract with no expiry date.
Where You Will Meet This Term
You will run into mark price constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.