The Differences among Index Price, Fair Price and Latest Transaction Price

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

Interface Introduction

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

Definition of Three Prices

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

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

The 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. The 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)

Closing thoughts

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.

Disclaimer: Trading crypto involves significant risk and can result in the loss of your invested capital. The materials are not related to the provision of advice regarding investment, tax, legal, financial, accounting, consulting, or any other related services and are not recommendations to buy, sell, or hold any asset. MEXC Learn solely provides information, but not financial advice. You should ensure that you fully understand the risk involved before investing.

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