Mark price

A reference price a derivatives venue uses to value open positions and trigger liquidations.

In plain English

Usually built from an index of several spot venues rather than the venue’s own last trade, so that one thin print cannot liquidate everyone. Your liquidation is decided by the mark price, not the last price you see on the chart.

Example

A brief spike in the last traded price on one venue may not move the mark price enough to trigger liquidations.

Futures Trading

See also

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