The two prices on the futures screen often don’t match—which one should you trust?
Liquidation is based on the mark price. If the latest traded price makes a sudden jump but the mark price hasn’t reached the liquidation price, your position generally won’t be liquidated.
When setting a stop-loss, decide which price should trigger it: the latest price is more responsive, while triggering on the mark price makes it less likely you’ll get stopped out by a sudden wick.
Today’s market: $BTC is trading at 83055.81, up 0.29% over 24 hours.
Have you ever learned this the hard way? Share your experience and help others avoid the same pitfalls.
Liquidation is based on the mark price. If the latest traded price makes a sudden jump but the mark price hasn’t reached the liquidation price, your position generally won’t be liquidated.
When setting a stop-loss, decide which price should trigger it: the latest price is more responsive, while triggering on the mark price makes it less likely you’ll get stopped out by a sudden wick.
Today’s market: $BTC is trading at 83055.81, up 0.29% over 24 hours.
Have you ever learned this the hard way? Share your experience and help others avoid the same pitfalls.