Why are the two numbers on the contract screen often different? Which one should I look at?
The mark price and the latest price are usually quite close, but they can diverge significantly during sharp market swings. When that happens, use the mark price to assess your position’s risk.
Knowledge may seem useless most of the time, but it sure comes in handy when you’re about to learn the hard way.
Before opening a position, calculate the liquidation price. If it’s too close to the current price, reduce your position size.
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