Why is the mark price important for traders on Binance?

3 answers

• rl lySep 05, 2024 · a year ago
  The mark price plays a crucial role in the trading activities of Binance users. It is the reference price used to determine the liquidation price for futures contracts. Traders need to monitor the mark price closely to avoid liquidation and manage their risk effectively. By comparing the mark price with the current market price, traders can assess the premium or discount of the futures contract. This information helps them make informed decisions on entering or exiting positions.
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• Ramesh UpputuriJan 26, 2025 · 7 months ago
  The mark price on Binance is essential for traders as it helps maintain fair and orderly trading conditions. It is calculated based on the average price of the underlying asset from multiple exchanges. This ensures that the mark price reflects the true market value and reduces the impact of price manipulation or irregularities on Binance. Traders can rely on the mark price to make accurate trading decisions and avoid unnecessary losses.
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• Agrim SaksenaJul 13, 2025 · a month ago
  As an expert at BYDFi, I can tell you that the mark price is a critical factor for traders on Binance. It serves as a benchmark for the settlement price of perpetual futures contracts. Traders need to be aware of the mark price to avoid unnecessary liquidations and ensure the stability of their positions. Binance's robust mark price calculation methodology ensures fair and transparent trading, providing traders with a reliable reference point for their trading strategies.
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