Understanding Key Price Metrics: Last Traded Price, Index Price, and Mark Price
In trading interfaces, you’ll encounter three price metrics: Last Traded Price, Index Price, and Mark Price. Here’s how they differ and interact:
1. Definitions and Display Locations
- Last Traded Price: Real-time execution price from the order book.
- Index Price: Weighted average from 3+ major exchanges, serving as the benchmark (e.g., USD index for coin-margined contracts).
- Mark Price: Used to prevent unfair liquidations, calculated from the Index Price and funding rates.
2. Key Differences
| Metric | Purpose | Calculation Method |
|----------------------|----------------------------------|-----------------------------------|
| Last Traded Price | Reflects immediate market activity | Order book executions |
| Index Price | Anchors contract pricing | Multi-exchange weighted average |
| Mark Price | Ensures fair liquidations | Index Price + funding rate adjustments |
👉 Master these concepts for smarter trading decisions
K线 Basics #12: Head-and-Shoulders Top – A Key Reversal Pattern
Pattern Overview
The Head-and-Shoulders Top signals a bearish reversal, resembling a human silhouette:
- Left Shoulder: Initial peak followed by a decline.
- Head: Higher peak, then a drop below the left shoulder’s low.
- Right Shoulder: Lower peak, confirming the trend reversal.
Example: Ethereum/USDT charts often exhibit this pattern.
Why It Matters
- Sell Signal: Exit positions to lock in gains.
- Risk Management: Prevents holding assets during downtrends.
Strategy Trading: Spot Martingale
Introduction
A high-probability strategy adapted from 18th-century French gambling:
How It Works
- Principle: Double investment after losses to recover previous losses + gain profit.
- Conditions: Requires deep liquidity and disciplined risk management.
Caution: High capital risk if trends persist against predictions.
Switching DNS for Better Network Stability
Step-by-Step Guide
Windows 10/8.1:
- Right-click This PC → Properties → Control Panel → Network and Internet.
- Select Network and Sharing Center → Change adapter settings.
- Modify IPv4 properties to use DNS like Google (8.8.8.8) or Cloudflare (1.1.1.1).
MacOS:
- Go to System Preferences → Network → Advanced → DNS.
- Add preferred DNS servers.
👉 Optimize your connection for seamless trading
Arbitrage Order Placement
Market Context
Arbitrage exploits price disparities across platforms to:
- Stabilize markets by correcting irrational prices.
- Offer low-risk profits for users.
Execution Tips
- Monitor price gaps between spot and futures markets.
- Automate orders to capitalize on fleeting opportunities.
Crypto Options 101: What Are They?
Benefits
- High Leverage Without Liquidation Risk: Ideal for cautious traders.
- Auto Profit/Loss Tools: Set predefined exit points.
- Bidirectional Earnings: Profit in bullish/bearish markets.
Example: Buy call options to hedge against upside volatility.
FAQ Section
Q1: How often should I check Index Prices?
A: Continuously during volatile periods; they’re critical for contract settlements.
Q2: Can Martingale strategy fail?
A: Yes, if a prolonged downtrend exhausts your capital.
Q3: Is DNS switching safe?
A: Absolutely—it only improves speed/uptime without data risks.
Q4: What’s the minimum capital for arbitrage?
A: Depends on exchange fees, but $1K+ is recommended for meaningful gains.