What is Index Price?
A weighted average of an asset's price across multiple major spot exchanges — used as the basis for mark price and liquidation calculations in futures markets.
The index price aggregates BTC (or any asset) prices across multiple reputable spot exchanges into a single fair-value figure. It is the foundation of the mark price used in futures liquidation.
Typical index composition for BTC:
Most major exchanges (Binance, Bybit, OKX) use a weighted average of BTC/USD prices from 3–8 spot exchanges, excluding outliers to prevent manipulation.
Example components:
Index price ≈ $50,007
Why it matters for traders:
Your futures P&L and liquidation price both reference the index, not just the exchange you're trading on. This means:
1. Short-lived price anomalies on one exchange don't affect your position
2. During extreme volatility, index price can briefly differ significantly from any individual exchange's last price
3. Arbitrageurs continuously align exchange prices with the index
Where to find it: Displayed on the futures trading interface of every major exchange, usually alongside the mark price and last price.