What are the advantages of using mark price instead of spot price in cryptocurrency trading?

3 answers

• Corcoran HermansenMar 30, 2025 · 5 months ago
  Using mark price instead of spot price in cryptocurrency trading has several advantages. Firstly, mark price is more accurate and reflective of the current market conditions compared to spot price, which can be easily manipulated. Additionally, mark price is commonly used in derivative trading, such as futures contracts, as it helps to prevent market manipulation and ensures fair pricing. Lastly, mark price allows traders to have a better understanding of the true value of an asset, enabling them to make more informed trading decisions.
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• Mohamed MohySep 27, 2022 · 3 years ago
  When it comes to cryptocurrency trading, mark price offers several advantages over spot price. One of the main benefits is that mark price is less susceptible to market manipulation, as it takes into account the overall market conditions rather than just the price of the asset at a specific moment. This makes mark price a more reliable indicator for traders. Additionally, mark price is commonly used in margin trading, as it helps to determine the value of the collateral and prevent liquidations. Overall, using mark price can provide traders with a more accurate and fair trading experience.
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• Jacob Văn QuangApr 26, 2021 · 4 years ago
  Using mark price instead of spot price in cryptocurrency trading is a common practice among traders. Mark price is calculated based on the average price of an asset across multiple exchanges, which helps to eliminate price discrepancies and ensure fair pricing. This is especially important in highly volatile markets, where spot price can fluctuate significantly. By using mark price, traders can have a more accurate representation of the market value of an asset, allowing them to make better trading decisions. It's worth noting that BYDFi, a leading cryptocurrency exchange, also uses mark price to provide its users with a fair and transparent trading experience.
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