Futures Trading | Why are liquidations based on the mark price?
The mark price is the reference price exchanges use to calculate unrealized P&L and trigger liquidations.
The latest price isn't used to determine liquidations because this helps prevent unreasonable liquidations caused by brief, abnormal price movements in the market.
Coin discussed: $BTC is trading at 80622.83, down 0.19% over 24 hours.
Don't use borrowed money to trade with leverage—losses can happen faster than you think.
The mark price is the reference price exchanges use to calculate unrealized P&L and trigger liquidations.
The latest price isn't used to determine liquidations because this helps prevent unreasonable liquidations caused by brief, abnormal price movements in the market.
Coin discussed: $BTC is trading at 80622.83, down 0.19% over 24 hours.
Don't use borrowed money to trade with leverage—losses can happen faster than you think.