I'm trying to understand the concept of marked price. What does it signify in the context of pricing and sales? Is it the original price before any discounts or offers?
7 answers
KpopHarmonySoulMateRadiance
Wed Dec 18 2024
The mark price acts as a benchmark for Bybit to determine when a trader's position needs to be liquidated due to insufficient margin.
Carlo
Wed Dec 18 2024
Additionally, Bybit employs the mark price to measure unrealized profits and losses of traders. This allows traders to monitor their performance in real-time.
Elena
Wed Dec 18 2024
Perpetual contracts serve as a prime example to illustrate the concept of mark price. This pricing mechanism incorporates the global spot price index and adjusts it with a decreasing funding fee basis rate.
Alessandra
Wed Dec 18 2024
The mark price, essentially, represents the real-time spot price of the contract across major exchanges. It is a dynamic figure that reflects the current market conditions.
SamsungShineBrightnessRadianceGlitter
Wed Dec 18 2024
It's important to note that while the mark price plays a significant role in these calculations, it does not directly impact the actual profits and losses of traders. The final settlement is based on the actual spot price at the time of execution.