This article explains the difference between Mark Price and Last Price in Futures Trading.
🔍 What Are Mark Price and Last Price?
In Futures Trading, both Last Price and Mark Price are used to help prevent:
📈 Extreme price spikes
⚠️ Unnecessary liquidations
💰 What Is Last Price?
Last Price refers to the most recent executed trade price.
In other words, it is the price of the latest completed trade in the trading history.
📌 Main Usage
Used to calculate Realized PnL
🛡 What Is Mark Price?
Mark Price is designed to prevent price manipulation and unnecessary liquidations.
Mark Price is calculated using a combination of:
📌 Price data from multiple spot exchanges
📌 Market data such as funding-related data
📌 Main Usage
Used to calculate Liquidation Price
Used to calculate Unrealized PnL
⚠️ Important Note
Mark Price and Last Price may be different.
This helps prevent unnecessary liquidations during periods of high market volatility.
💡 Summary
✅ Last Price → Actual executed trade price
✅ Mark Price → Used for liquidation and unrealized PnL calculations
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