Why are liquidations based on the mark price? No need to panic—the class rep is here to explain:
The mark price is generally calculated using weighted prices from several spot exchanges, along with data such as the basis and funding rate.
Most of the time, the mark price is close to the latest price. When the market moves sharply, they can diverge, so use the mark price when checking your liquidation distance.
There’s no homework for this lesson, but the market can give you a pop quiz at any time.
$BTC 82388.01 (+1.68%)
Just my personal take—it may not be accurate, so use your own judgment.
The mark price is generally calculated using weighted prices from several spot exchanges, along with data such as the basis and funding rate.
Most of the time, the mark price is close to the latest price. When the market moves sharply, they can diverge, so use the mark price when checking your liquidation distance.
There’s no homework for this lesson, but the market can give you a pop quiz at any time.
$BTC 82388.01 (+1.68%)
Just my personal take—it may not be accurate, so use your own judgment.