Mark Price

Glossary · Derivatives

Mark price is the fair-value price an exchange uses to calculate unrealized PnL and trigger liquidations, usually built from the index price plus a smoothed basis. It exists so a single manipulated wick on one order book can't liquidate positions — your liquidation fires on mark price, not the last traded price.

"The price the exchange actually judges you on — your liq triggers on this one, not on the wick somebody painted."

A typical construction: mark price = index price + a moving average of the perp-index gap, refreshed every few seconds. The smoothing is the whole point — if someone slams the book and prints a 4% wick on last price, mark barely flinches, so positions priced off mark survive the print. Unrealized PnL and liquidation triggers run on mark; last price only decides where your orders fill.

Two misreads cost money here. First, panicking because last price wicked through your liq level — check whether mark did, because mark is the number that fires. Second, assuming mark protects you in a real move: it smooths manipulation, not trends, and in a cascade mark follows the index down all the way. The mark-last gap is itself a tell — when last trades persistently above mark, the perp is running hot and funding is about to make longs pay for the privilege.

Mark price and funding on every perp

Related jargon

Questions

What is Mark Price in crypto trading?

Mark price is the fair-value price an exchange uses to calculate unrealized PnL and trigger liquidations, usually built from the index price plus a smoothed basis. It exists so a single manipulated wick on one order book can't liquidate positions — your liquidation fires on mark price, not the last traded price.

How would a trader say it?

The price the exchange actually judges you on — your liq triggers on this one, not on the wick somebody painted.

Part of the Crypto Jargon glossary — every term, decoded the way a trader would say it.

Crypto Jargon

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