Mark Price vs Last Price
What Is Last Price?
The last price is simply the most recent trade price on the exchange. It reflects the actual market price at any given moment and is the price you see on charts and execute trades at.
What Is Mark Price?
The mark price is a reference price calculated by the exchange to determine unrealized PnL and trigger liquidations. It is usually calculated as: (Bid 1 + Ask 1) / 2, or a weighted average of the order book, often combined with the spot index price to prevent manipulation.
Why Mark Price Matters
Your position will be liquidated based on the mark price, NOT the last price. During high volatility or low liquidity, the last price can deviate significantly from the mark price. A sudden wick can trigger liquidations even if the "real" price hasn't reached your liquidation level.
Check your liquidation price with mark price:
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