[Bybit: Virtual currency, NFT] Differences and features between mark price and index price


Bybit has two concepts regarding pricing. The mark price and the index price are roughly the same, but there are differences when the market is moving a lot. If you trade on Bybit, you will need to know the difference between mark price and index price.

Prices used on Bybit

On Bybit, there are a lot of price types used in the first place. You should know what each means.

index price

The spot price calculated with reference to the prices of other exchanges displayed on the order screen is called the index price. Since the price takes into consideration the trading prices of multiple exchanges, it is possible to reduce the risk that the spot price will fluctuate due to large transactions.

mark price

The mark price is the standard price for unrealized profit and loss, leverage and margin, and loss cut. The calculation method is as follows.

Funding Base Rate = Funding Rate * (Time to Funding / Funding Interval)
Fair Price = Index Price * (1 + Funding Base Rate)

Last traded price

Last traded price refers to the current market price on the Bybit exchange, which is displayed in the middle of the trading board. This price simply tells you how much the coin is currently trading on Bybit. Closed positions will be traded at this Last Traded Price.

liquidation price

The forced liquidation price is the stop-loss price displayed on the position screen. If the margin falls below the liquidation price, liquidation will occur. Of course, the higher the leverage, the greater the risk of loss cuts, so be careful.

entry price

The entry price refers to the price calculated from your own position trading volume and the individual position trading amount. The entry price is recalculated each time a trader increases or decreases a position, allowing traders to check the status of their open positions.

Reasons for setting the mark price at the loss-cut level

The price is as above, but the margin and forced loss cut level are determined by the mark price. This is often involved in large price fluctuations in virtual currency FX. Bybit uses the mark price as a loss cut to avoid getting caught up in such a situation.

reduce impact

If you use an index price, you will be caught up in the ups and downs of the market. By adopting the mark price, it stabilizes. The biggest feature of the mark price is that it is less susceptible to sudden fluctuations in the market. This will prevent you from being swayed by market fluctuations.

fairness of transactions

In order to achieve fair trading, Bybit adopts a dual pricing mechanism with mark price and final trade price. In an unstable market, using double prices to make decisions ensures fairness in trading.

Influence range of mark price

In what ways is the mark price affected? Bybit states that the mark price only affects the liquidation price and unrealized P&L. This means that it does not affect realized profit or loss. Even if the market price moves rapidly for a few seconds, the mark price will be a smooth price change. This makes it very stable. It will be possible to reduce the risk of loss cut at an impossible rate.

orden condicional

Los tipos de órdenes de Bybit incluyen órdenes condicionales. Los pedidos condicionales le permiten especificar un precio de marca. Hay muchos usuarios que utilizan el precio de marca porque el criterio para el corte del stop-loss se basa en el precio de marca. Las órdenes condicionales también le permiten especificar el último precio comercial o el precio índice.

pérdidas y ganancias no realizadas

Bybit tiene un concepto llamado pérdidas y ganancias no realizadas. Las pérdidas y ganancias no realizadas son una cifra que indica las pérdidas y ganancias de las posiciones no liquidadas y se expresa en el precio de marca al determinar las pérdidas y ganancias. La información más reciente sobre los precios de mercado es absolutamente necesaria para realizar juicios de pérdidas y ganancias actuales.

Recommendations for opening a free account

Bybit will complete the registration process in about 1 minute, so you can easily open it. You can also open an account for free as it does not cost money. It also comes with a bonus.