【Mark Price】
In order to enhance market stability and minimize unnecessary forced liquidation when the market is abnormal, CoinQ uses the mark price to calculate the user's unrealized profit and loss.
Mark Price = Spot Index Price + Basis Moving Average
Basis Moving Average
= Moving Average (Futures Mid-Price - Spot Index Price)
= Moving Average ((Futures Ask Price + Futures Buy Price) / 2 - Spot Index Price)
The mark price takes into account the moving average of both the spot index price and the basis. The moving average mechanism can smooth short-term fluctuations in futures prices and help reduce unnecessary forced liquidations caused by abnormal market fluctuations.
You can think of the mark price as a trigger. It triggers the operation only when the user sets a stop loss or take profit order. Once triggered, it will be executed at the latest bid or ask price based on the market depth.
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