2026-01-20 07:33:25

The details in futures trading that are easy to overlook

I only understood this later myself 🥲🥲

1⃣ Mark Price (MARK PRICE)

This is designed to prevent market anomalies and manipulation. Simply put, it takes the average market price to serve as the basis for liquidation and the calculation of floating profit and loss.

Imagine you're trading on a platform, and suddenly someone places a large order that causes the chart to spike. Based on the spot price, you should have been liquidated already. But because of the mark price mechanism, the system doesn't blindly liquidate you at the last traded price. It references the overall market average level to protect you from extreme fluctuations on a single exchange.

That's why sometimes you see candlestick charts filled with green, but your account hasn't been liquidated — the mark price and the current price have diverged, and the system uses the mark price to make its judgment.

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Frontrunner

· 01-22 22:59

Oh wow, the mark price can definitely be tricky and easy to be exploited. I almost got burned before because I didn't understand it.

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TokenUnlocker

· 01-22 16:02

Now I finally understand. I really didn't pay attention to the mark price before. I've been scared several times by liquidation orders, thinking I was going to be directly liquidated. Turns out the system was already protecting me all along.

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MevShadowranger

· 01-21 16:16

I should have known this earlier; how many times do I have to get my orders canceled and wiped out before I understand?

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LiquidationWatcher

· 01-20 08:02

Wow, I really didn't understand the concept of mark price before. No wonder I kept getting tricked into it.

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DeFiVeteran

· 01-20 08:02

Damn, the mark price really saved me several times, I didn't realize it before.

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SignatureLiquidator

· 01-20 07:56

Wow, now I understand why I wasn't exposed that time... I thought I was just lucky.

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HodlKumamon

· 01-20 07:42

Wow, someone finally mentioned this. I was actually scammed by this thing before... The mark price is really a lifesaver. If it weren't for that, I would have been liquidated and sent to grandma's house long ago.

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GmGnSleeper

· 01-20 07:40

Wow, I really didn't notice this before. No wonder I didn't blow up immediately when targeted.

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SerumSurfer

· 01-20 07:39

Wow, I really misunderstood the mark price before. I thought it was just set arbitrarily by the exchange.

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WalletDetective

· 01-20 07:34

The mark price has really saved me many times; otherwise, I would have been liquidated and taken a loss long ago.