What is Mark Price?

Mark price is the reference price used by futures exchanges to calculate unrealised P&L and trigger liquidations. It is deliberately different from the last traded price on that exchange.

Why mark price exists:

Without it, a large trader could briefly crash the price on a single exchange, triggering mass liquidations, then profit from the forced selling. Mark price closes this attack vector.

How it is calculated:

Mark Price ≈ Index Price + Funding Basis

Where:

Practical implications:

If Binance's last price briefly wicks to $45,000 but the mark price stays at $48,000 (because other exchanges show $48,000+), your position is NOT liquidated at the wick. You're only liquidated when the broader market — the index — reaches your liquidation level.

Mark price vs. last price — which is displayed?

Most exchange interfaces show both. Your unrealised P&L uses mark price. Order fills use last traded price. Your liquidation trigger uses mark price.

Always check the mark price when assessing how close you are to liquidation — not the last price.