【Mark price】
To enhance market stability and minimize unnecessary forced liquidations during market anomalies, WEEX uses the mark price to calculate users' unrealized profits and losses.
Mark Price = Spot index price + Moving average of basis
Moving average of basis
= Moving average (Futures mid-price - spot index price)
= Moving average ((Futures ask price + Futures bid price) / 2 - Spot index price)
The mark price considers both the spot index price and the moving average of the basis. The moving average mechanism smooths out short-term fluctuations in futures prices, helping to reduce unnecessary forced liquidations triggered by abnormal market movements.
You can think of the mark price as a trigger. It merely triggers an action when users have set stop-loss or take-profit orders. When triggered, it will be executed at the latest bid or ask price, depending on market depth.
-
Thank you for your support of WEEX!
WEEX Team
Find us on:
Twitter | Telegram | Medium | Facebook | Discord|LinkedIn|Blog
Join WEEX today: https://www.weex.com/register
[Supported Platforms]:
Enjoy trading on WEEX.
Comments
0 comments
Please sign in to leave a comment.