Futures Trading | Why is liquidation based on the mark price?
Liquidation is based on the mark price. If the latest price moves suddenly but the mark price hasn’t reached the liquidation price, the position usually won’t be liquidated.
The mark price and latest price are usually close, but they can diverge during sharp volatility. In that case, use the mark price to gauge how close you are to liquidation.
For reference: $BTC current price 77168 (24h -1.53%).
Leverage isn’t a must—if you’re not familiar with it, it’s safer to stay away for now.
#BTC
Liquidation is based on the mark price. If the latest price moves suddenly but the mark price hasn’t reached the liquidation price, the position usually won’t be liquidated.
The mark price and latest price are usually close, but they can diverge during sharp volatility. In that case, use the mark price to gauge how close you are to liquidation.
For reference: $BTC current price 77168 (24h -1.53%).
Leverage isn’t a must—if you’re not familiar with it, it’s safer to stay away for now.
#BTC