🔥 The Essentials of Futures Trading: Mark Price
The latest price isn't used to calculate liquidations because this helps prevent sudden, abnormal price movements on a single market from triggering unnecessary cascades of liquidations.
When setting a stop-loss, think carefully about which price should trigger it: the latest price reacts faster, while the mark price is less likely to trigger a stop-loss due to a brief price wick.
Current price: $BTC is trading at 80872.01, 24h -0.026%.
What would you like to learn about next? Futures or something else?
The latest price isn't used to calculate liquidations because this helps prevent sudden, abnormal price movements on a single market from triggering unnecessary cascades of liquidations.
When setting a stop-loss, think carefully about which price should trigger it: the latest price reacts faster, while the mark price is less likely to trigger a stop-loss due to a brief price wick.
Current price: $BTC is trading at 80872.01, 24h -0.026%.
What would you like to learn about next? Futures or something else?