b9_1155what is mark price?
a "fair" price, mostly based on an index of spot prices, that many exchanges use to trigger liquidations.
stop orders often trigger on the last traded price instead. the two can differ briefly, so a position can be liquidated before its stop fires.
related words
- isolated vs cross margin two ways an exchange decides how much of your money backs a leveraged position.
- funding rate regular payments between buyers (longs) and sellers (shorts) of perpetual futures.
- liquidation the exchange force-closing a leveraged position when its margin falls below the required minimum.
part of the topic risk: free articles, more words and the guide.
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