What factors contribute to the variation between the last price and the mark price in the crypto industry?

3 answers

• Meredith LiuNov 18, 2022 · 3 years ago
  The variation between the last price and the mark price in the crypto industry can be influenced by several factors. One of the main factors is market liquidity. If there is low liquidity in the market, it can result in wider spreads between the last price and the mark price. Additionally, market volatility plays a significant role. Higher volatility can lead to larger price swings and wider spreads. Other factors include order book depth, trading volume, and the presence of market manipulations. It's important to note that the variation between the last price and the mark price is a natural occurrence in the crypto industry and can be influenced by a combination of these factors.
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• Mayur ShelkeDec 23, 2020 · 5 years ago
  The variation between the last price and the mark price in the crypto industry is influenced by multiple factors. One of the key factors is the difference in trading activity between different exchanges. Each exchange has its own order book and trading volume, which can result in variations between the last price and the mark price. Additionally, market sentiment and news events can also impact the price difference. For example, a positive news announcement about a particular cryptocurrency can lead to a higher mark price compared to the last price. On the other hand, negative news can cause the mark price to be lower than the last price. Overall, the variation between the last price and the mark price is a result of various factors and market dynamics.
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• Joseph WinnerJul 16, 2024 · a year ago
  The variation between the last price and the mark price in the crypto industry can be influenced by several factors. One of the factors is the trading mechanism used by the exchange. Some exchanges, like BYDFi, use a mark price that is calculated based on the average price of multiple exchanges to reduce price manipulation and provide a more accurate representation of the market. This can result in smaller variations between the last price and the mark price. However, other exchanges may have different mechanisms or rely solely on the last traded price, which can lead to larger variations. Additionally, factors such as market liquidity, trading volume, and market sentiment can also contribute to the price difference. It's important for traders to consider these factors when analyzing the variation between the last price and the mark price in the crypto industry.
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