Someone asked: Why are liquidations based on the mark price?
My answer: Stop-loss orders can be set to trigger based on either the latest price or the mark price, and the results can differ when there’s a sudden price spike. The reason liquidations aren’t calculated using the latest price is to prevent short-term price anomalies in a single market from triggering unjustified cascades of liquidations.
$BTC 82406（+1.4%）
If there’s anything I missed, let’s discuss it in the comments.
#BTC
My answer: Stop-loss orders can be set to trigger based on either the latest price or the mark price, and the results can differ when there’s a sudden price spike. The reason liquidations aren’t calculated using the latest price is to prevent short-term price anomalies in a single market from triggering unjustified cascades of liquidations.
$BTC 82406（+1.4%）
If there’s anything I missed, let’s discuss it in the comments.
#BTC