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What is the difference between the last price and the mark price in the cryptocurrency market?

Barlow McDowellOct 04, 2022 · 3 years ago1 answers

Can you explain the distinction between the last price and the mark price in the cryptocurrency market? How are these two prices determined and what factors can influence them?

1 answers

  • Funch NewtonJul 21, 2022 · 3 years ago
    At BYDFi, we use the mark price as the reference price for our cryptocurrency derivatives. This helps ensure fair and accurate settlement of contracts. Our mark price is calculated using a combination of factors, including the last price, index price, and funding rates. We update the mark price frequently to reflect the current market conditions. It's important for traders to understand the difference between the last price and the mark price, as it can affect their trading strategies and the settlement of their positions.