Index Price, Fair Price and Latest Transaction Price

Users see the three difference prices, i.e. Index Price, Fair Price and Latest Transaction Price on futures trading page. Then, how do we know the meaning and difference among those three prices?

Looking for price types

You can check three prices on the futures trading page. And usually they won’t have much difference in exact numbers.

Price types in trading terminal

Definition of Three Prices

Index Price is the weight average price of the spot prices selected from at least three different exchanges and given different weights by MEXC.

Fair Price is the Index price with the capital cost basis rate, uniquely designed by MEXC. The fair price marking system is for avoiding unnecessary liquidation on highly leveraged products. Fair price is mainly used to calculate the unrealized loss and liquidation of position, which means the liquidation or automatic deleveraging is based on the fair price instead of the latest transaction price.

Calculation of the Fair Price

Funding Basis = Funding Rate * (Time Until Funding / Funding Interval)

Fair Price= Index Price * (1+Funding Basis)

The latest transaction price is the real-time market traded price in MEXC Futures.

Summary

Three prices in MEXC Futures are provided to give more information to users. You can place a stop order with different types of prices to reach the best trading experience you would like to have.

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The content of this webpage is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

Please note that the information and data above are cited from third-party sources & whitepapers and do not represent MEXC. Please refer to direct sources for more details. This is not financial advice and does not constitute an offer or solicitation to offer or recommend any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

This disclaimer informs readers that the MEXC Creator’s content, views, thoughts, and opinions expressed in the articles belong solely to the creators and authors, and not to MEXC Global itself. MEXC Global doesn’t give any investment recommendations or advice.

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