1. What is the Index Price?
The index price is the weighted average of the underlying asset's prices on major spot exchanges. The index price is continuously updated as the spot price of the underlying asset changes, reflecting the actual market value of the futures pair. DigiFinex selects the spot prices of the underlying asset from various major exchanges as the source of the futures index.
The purpose of setting the index price is to reduce the risk caused by price volatility and market manipulation, providing a more stable price reference.
Calculation Method:
Index Price = (Weight Percent of Exchange A * Spot Price of the Underlying Asset on Exchange A + Weight Percent of Exchange B * Spot Price of the Underlying Asset on Exchange B + ... + Weight Percent of Exchange N * Spot Price of the Underlying Asset on Exchange N)
-
Weighted Percent of Exchange i = Weight of Exchange i / Total Weight
-
Total Weight = Weight of Exchange A + Weight of Exchange B + ... + Weight of Exchange N
DigiFinex will periodically update the index components and weights. If extreme market conditions or abnormal price deviations occur, DigiFinex will take additional protective measures, including but not limited to changing the index components and weights without prior notice.
2. What is Mark Price?
The Mark price is calculated based on the index price and the cost basis moving average.
To improve market stability and reduce unnecessary forced liquidations during abnormal market fluctuations, DigiFinex perpetual futures use a specially designed mark price system. Instead of using the last price, the system sets the mark price to helps prevent unnecessary deviations between the market price and the price index caused by market manipulation or lack of liquidity, thereby avoiding unnecessary forced liquidations.
On the futures trading page, you can set the K-line chart to display the [Mark Price] at the top of the chart.
Calculation Method:
Mark Price = Median (Funding Rate Premium, Mid-Price Basis Mark Price, Last Price)
-
Funding Rate Premium = Index Price * (1 + Latest Funding Rate * (Hours Until Next Funding Settlement / Funding Settlement Period in Hours))
-
Mid-Price Basis Mark Price = Index Price + Moving Average of Basis (specified period) = Index Price + Moving Average [(Best Bid Price + Best Ask Price) / 2 - Index Price]
-
Last Price is the most recent futures transaction price, updated in real-time.
Please Note:
The mark price only affects the liquidation price and unrealized PNL.
This means that when orders are executed, they may see positive or negative unrealized profit and loss immediately. This happens due to a slight deviation between the mark Price and the Last Price. This is a normal phenomenon and does not mean that users have lost funds, but users must pay attention to the forced liquidation price to avoid being forced to liquidate prematurely.
3. What is Market Trade Price?
Market Trade price refers to the price at which futures pairs are instantly traded in the order book.
You can view this price by clicking on the [Latest Trades] tab in the order book area on the futures trading page.
DigiFinex communities
Telegram Activity Airdrop:https://t.me/DigiFinexAirdrop365
Telegram Official Community:https://t.me/DigiFinexEN
Telegram AMA Community: https://t.me/DigiFinexAMA
Official Twitter: https://twitter.com/digifinex
Official Facebook:https://www.facebook.com/digifinex.global
Official Instagram:https://www.instagram.com/digifinex.global
Official Medium: https://medium.com/@digifinex
Official Reddit: https://www.reddit.com/user/DigiFinex/
Telegram Activity Airdrop:https://t.me/DigiFinexAirdrop365
Telegram Official Community:https://t.me/DigiFinexEN
Telegram AMA Community: https://t.me/DigiFinexAMA
Official Twitter: https://twitter.com/digifinex
Official Facebook:https://www.facebook.com/digifinex.global
Official Instagram:https://www.instagram.com/digifinex.global
Official Medium: https://medium.com/@digifinex
Official Reddit: https://www.reddit.com/user/DigiFinex/
Comments
0 comments
Please sign in to leave a comment.