Why are liquidations based on the mark price?
Conditional orders can be set to trigger based on either the latest price or the mark price. These two settings can behave differently during periods of extreme volatility. Liquidations are based on the mark price, so if the latest traded price briefly fluctuates but the mark price doesn't reach the liquidation price, the position generally won't be liquidated.
Using the latest price directly to determine liquidations would risk unfair liquidations caused by brief, abnormal price movements in a single market.
Market overview: $BTC is at 69,248 (24h -5.12%).
This is just for discussion; trade at your own risk.
Conditional orders can be set to trigger based on either the latest price or the mark price. These two settings can behave differently during periods of extreme volatility. Liquidations are based on the mark price, so if the latest traded price briefly fluctuates but the mark price doesn't reach the liquidation price, the position generally won't be liquidated.
Using the latest price directly to determine liquidations would risk unfair liquidations caused by brief, abnormal price movements in a single market.
Market overview: $BTC is at 69,248 (24h -5.12%).
This is just for discussion; trade at your own risk.
