Mark price vs last price
Last price is the most recent trade. Mark price is a fair price derived from the index and funding basis, used to prevent manipulation. Most venues use mark price for liquidation.
- Last price can be noisy during thin liquidity.
- Mark price is smoother and closer to spot.
- Liquidation is typically based on mark price.
Why it matters for beginners
- You might not be liquidated even if last price wicks briefly.
- Wide spreads can spike last price but not mark price.
- Always check the mark price on your venue’s order panel.
How mark price is calculated (simple view)
Exchanges use an index price + funding basis or a weighted average of spot prices across venues. The goal is a fair price that’s harder to manipulate.
If you see a liquidation, check whether it was driven by mark price or last price—this explains many “I got wicked out” complaints.
Related pages
- Leverage & liquidation: Perp Leverage Explained
- Funding basics: Funding Rate Explained