What Is The Mark Price And How Can I Use It To My Advantage

in #derivativestrading6 years ago (edited)

The importance of mark price

Mark price determines whether your position is liquidated or kept intact. If last trade price goes down, but mark price stays the same, your position is left untouched by the liquidation engine. However, if mark price crosses the threshold for margin call, you’re in for a nasty surprise.


Medium Story: https://medium.com/mark-price/mark-price-e8f748c9b549