Why are liquidations based on the mark price? Don’t panic—your class rep is here:
Liquidations are triggered based on the mark price. If the latest traded price briefly fluctuates but the mark price hasn’t reached the liquidation price, your position generally won’t be liquidated.
The mark price and the latest price are usually very close, but they can diverge when the market moves sharply. In that case, use the mark price to assess your position’s risk.
The first page of my study notes says: understand it before you act.
$BTC 82050.01（+2.06%）
It’s your money—you call the shots.
Liquidations are triggered based on the mark price. If the latest traded price briefly fluctuates but the mark price hasn’t reached the liquidation price, your position generally won’t be liquidated.
The mark price and the latest price are usually very close, but they can diverge when the market moves sharply. In that case, use the mark price to assess your position’s risk.
The first page of my study notes says: understand it before you act.
$BTC 82050.01（+2.06%）
It’s your money—you call the shots.