Latest Transaction Price: It refers to the real-time transaction price of the market during contract trading.
Index Price: It is calculated by selecting the spot prices of more than three mainstream exchanges as the weight component. It is the price at which perpetual contract transactions need to be anchored.
Mark Price: It is used to calculate the liquidation price and unrealized profit and loss. Mark Price is used to improve the stability of the contract market and reduce unnecessary forced liquidation during abnormal market fluctuations.
*Where to check Mark Price？
Open Deepcoin app, tap Contract on the bottom navigation bar.
Then tap menu upper right of USDT Perpetual/Inverse Perpetual.
you can check mark price in【Contract Info】.
Deepcoin uses a uniquely designed reasonable price marking system to avoid unnecessary forced liquidation on highly leveraged products. Without this system, Mark Price may deviate unnecessarily from the price index due to market manipulation or lack of liquidity, leading to unnecessary forced liquidation. This system sets Mark Price to a reasonable price instead of the latest transaction price, thereby avoiding unnecessary liquidation.
Mark Price Calculation:
Basis moving average = moving average ((contract selling price + contract buying price)/2-spot index price)
Mark price = Spot index price + basis moving average
Mark prices smoothly filter short-term contract price fluctuations through the moving average mechanism, reducing unnecessary forced liquidation caused by abnormal fluctuations.