Latest Price vs. Mark Price
Definitions and Key Differences
Latest Price
The Latest Price refers to the most recent transaction price of the contract — the price at which the last trade was executed.
In YUBIT perpetual contracts, the latest price is influenced by the underlying asset.
Due to continuous buying and selling activity, the latest price may deviate from the spot market price.
This price often reflects short-term supply and demand dynamics within the contract market.
Mark Price
The Mark Price represents the estimated fair value of the contract. It is primarily used to manage risk and prevent unnecessary liquidations during volatile market conditions.
YUBIT calculates the mark price based on a weighted average of prices from multiple sources.
This creates a more stable and reliable reference, reducing the risk of price manipulation or abnormal spikes.
Accessing Mark Price History
You can review the historical mark price data directly on the YUBIT platform:
Web: Navigate to “Contract Data” and select the Mark Price section.
App: On the contract trading page, tap the three dots in the top right corner, then select “Mark Price History.”
Impact on Liquidation and PnL
Liquidation
Liquidations on YUBIT are triggered by the Mark Price, not the latest price.
If the mark price reaches the liquidation threshold, a forced liquidation may occur.
This ensures that short-term volatility in the latest price does not unfairly trigger liquidations.
Stop-Loss Considerations
Some traders wonder why a stop-loss order is placed but their position still gets liquidated.
This usually happens when the stop-loss is set too close to the liquidation price.
If the stop-loss is based on the latest price instead of the mark price, the mark price may reach the liquidation threshold faster.
Tip: When setting a stop-loss near the liquidation price, always select Mark Price as the trigger condition.
Unrealized PnL
Unrealized profit and loss (PnL) is calculated using the Mark Price, ensuring that PnL reflects a fair and stable reference value before the position is closed.
Summary
Latest Price: The actual last traded price in the market.
Mark Price: A fair-value reference price, adjusted to prevent unnecessary liquidations.
Mark Price is always used for liquidation calculations and unrealized PnL.
While Mark Price is not a real transaction price, it serves as a risk management tool, protecting traders against extreme volatility.
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