What is the mark price?
In one line: The mark price is a fair-value price, usually built from several spot exchanges, that crypto futures platforms use to value open trades and trigger liquidations.
A simple example
Bitcoin perpetual futures on one exchange show a last price of $60,000. Then a big sell order hits that one exchange. For a few seconds, the last trade prints at $59,100.
Across the major spot exchanges, bitcoin is still around $59,950. The exchange's mark price stays near that, $59,950, instead of jumping to $59,100.
Say your long position would be liquidated at $59,500. On the last price, you'd be closed out. On the mark price, you're not. A made-up example to show the idea.
How it's built
Details differ by exchange, but mark price usually combines:
- An index price: an average from several spot exchanges.
- A small adjustment linked to the Funding rate or the gap between futures and spot.
What it's used for
| Price | Used for |
|---|---|
| Last price | Your fills, the chart, stop triggers (often) |
| Mark price | Unrealized P&L and liquidation |
Some exchanges let you choose whether stops trigger on last price or mark price. Look for it in the order settings.
Why it matters
Mark price protects traders from being liquidated by one odd trade on one exchange, a quick wick that doesn't reflect the wider market. It also makes manipulation of liquidations harder.
In regulated futures markets, a similar idea exists: the exchange sets a daily settlement price used to "mark to market" every account.
A common mistake
Watching only the last price on the chart. Your liquidation is tied to the mark price, which can sit above or below what you see. And your Unrealized P&L on screen is often based on mark too.
Turn on the mark price line on your exchange's chart. Keep your Stop loss far enough from liquidation that the gap between the two prices never matters. Check it with the crypto liquidation calculator.
More on these contracts in Perpetual futures.
Questions
What's the difference between mark price and last price?
Last price is the most recent trade on that exchange. Mark price is a fair-value estimate from several sources, used for liquidation and P&L.
Why is my P&L different from the chart?
Many exchanges calculate unrealized P&L from the mark price, while the chart shows the last price.
Is mark price the same as index price?
Not quite. The index price is an average of spot exchanges. The mark price starts from it and may add a small adjustment.
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