Why are liquidations based on the mark price? Don’t panic—your class rep is here to explain:
The latest traded price is the price of the most recent trade in the contract market. A large order can cause a brief price spike—a sudden wick.
Not using the latest price directly to calculate liquidations helps prevent brief price distortions in a market from triggering unreasonable cascades of liquidations.
My bookmarks are full of useful insights, and my positions are full of tuition fees I’ve paid.
$BTC 82350.01（+1.97%）
The latest traded price is the price of the most recent trade in the contract market. A large order can cause a brief price spike—a sudden wick.
Not using the latest price directly to calculate liquidations helps prevent brief price distortions in a market from triggering unreasonable cascades of liquidations.
My bookmarks are full of useful insights, and my positions are full of tuition fees I’ve paid.
$BTC 82350.01（+1.97%）