What is an index price?

Index price trading, also known as index price, represents the average spot price of a specific token across several major exchanges. This metric is crucial for understanding the overall market value of a cryptocurrency.

The index price of a currency can vary between different exchanges. This variation depends on which trading platforms are considered "major exchanges." Only the data from these exchanges is factored into the index price calculation.

To determine the index price, a weighted average of the spot prices from these major exchanges is used. The weight assigned to each exchange is based on its significance in the market.

The calculation formula for the index price is as follows: Index price = spot price of exchange A x weight of exchange A + spot price of exchange B x weight of exchange B + and so on. This method ensures that the index price accurately reflects the market conditions.

BTCC is a leading cryptocurrency exchange that offers a range of services including spot, futures, and wallet services. These services cater to the diverse needs of traders and investors in the cryptocurrency market.