When trading perpetual contracts, you may notice different prices displayed on the platform.
Each serves a different purpose.
Last Price
The Last Price is the price of the most recent trade completed on the order book.
It reflects the latest transaction but may not always represent the broader market price.
Index Price
The Index Price represents the estimated market price of the underlying asset.
It is calculated using prices from multiple external sources and serves as the benchmark for the perpetual contract.
Mark Price
The Mark Price is used to calculate:
Unrealised P&L
Liquidation prices
Liquidation events
It is designed to reduce the impact of temporary price spikes or abnormal market activity.
Why Does This Matter?
Your chart may display the Last Price, while your liquidation and unrealised P&L are based on the Mark Price.
Because these prices serve different purposes, they may not always be identical.
Frequently Asked Questions
Why was I liquidated if the chart never reached my liquidation price?
Liquidations are based on the Mark Price, not the Last Price displayed on the trading chart.