What is the difference between mark price and last price in the context of cryptocurrency trading?

3 answers

• Miller MurrayMay 29, 2024 · a year ago
  The mark price and last price are both important indicators in cryptocurrency trading. The mark price represents the current market value of a cryptocurrency, while the last price refers to the price at which the most recent trade occurred. The mark price is often used as a reference for determining the liquidation price in leveraged trading, while the last price is more commonly used for analyzing recent trading activity and trends. Understanding the difference between these two prices can help traders make informed decisions based on market conditions and trading strategies.
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• fan of curryNov 09, 2024 · 8 months ago
  Mark price and last price are terms commonly used in cryptocurrency trading. The mark price is calculated based on the average of the bid and ask prices, ensuring a fair and accurate representation of the market value. On the other hand, the last price simply reflects the price at which the most recent trade took place. While the mark price is used for determining the settlement price in futures contracts, the last price is often used for tracking the price movement and identifying potential buying or selling opportunities. It's important for traders to consider both prices when analyzing the market and making trading decisions.
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• ilyas bajjiApr 08, 2025 · 3 months ago
  In the context of cryptocurrency trading, mark price and last price serve different purposes. The mark price is used to calculate the funding rate in perpetual swap contracts, which helps maintain the contract's price close to the underlying asset's spot price. On the other hand, the last price represents the most recent transaction price. Traders often use the last price to assess the market sentiment and identify potential support or resistance levels. While the mark price is more relevant for derivatives trading, the last price is commonly used in spot trading. Understanding the distinction between these two prices is crucial for traders to effectively navigate the cryptocurrency market.
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