When asked, “Why are forced liquidations based on the mark price?”
I usually answer like this: For conditional orders, you can choose whether they’re triggered by the latest price or the mark price. The two trigger methods can produce different results during a price spike. The mark price and latest price are usually quite close, but they can diverge during sharp volatility. In that situation, the mark price is what matters when assessing position risk.
$BTC 80599.1（+0.47%）
If you know someone who’s just getting into this, feel free to send it to them.
Whether to buy is up to you; I’m just sharing this.
I usually answer like this: For conditional orders, you can choose whether they’re triggered by the latest price or the mark price. The two trigger methods can produce different results during a price spike. The mark price and latest price are usually quite close, but they can diverge during sharp volatility. In that situation, the mark price is what matters when assessing position risk.
$BTC 80599.1（+0.47%）
If you know someone who’s just getting into this, feel free to send it to them.
Whether to buy is up to you; I’m just sharing this.