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| comment | | "parent_author":"",<br>"parent_permlink":"trade",<br>"author":"bitforex",<br>"permlink":"the-dual-price-mechanism",<br>"title":"\u26a1\ufe0fThe dual-price mechanism",<br>"body":"![weqeqw.png (https:\/\/cdn.steemitimages.com\/DQmY5Xbss9oaVJ2b27ss732hLeqjrPK8XUsZzfk3FpvX1xv\/weqeqw.png)\n\n\u26a1\ufe0fThe dual-price mechanism\n\u2800\nThe dual-price mechanism includes:\n1\ufe0f\u20e3 The mark price (fair price) \n2\ufe0f\u20e3 The last traded price\n\u2800\n\u26a1\ufe0fWhat is the mark price?\n\u2800\nMark Price = Index Price + Funding Basis\n\u2800\nMark price can effectively avoid large deviation between the price of contract market and the spot price,<br> which is caused by the lack of contract market liquidity. It provides a fair and transparent trading environment.\n\u2800\n\u2712\ufe0fTwo main functions of the mark price:\n- To calculate the unrealized profits and loss (PNL)\n- As the trigger for liquidation\n\u2800\n\u26a1\ufe0fWhat is the index price?\n\u2800\nThe index price is calculated from the latest market prices of the major spot markets.\n\u2800\nBitForex uses a dual price mechanism to protect the fairness of the contract market and avoid the risk of a trader's position being liquidated due to abnormal market volatility.\n\u2800\nBe smarter with [BitForex (bit.ly\/2uDhEmG)\n\u2800\n#trade #mining #education #bitforex #blockchain #cryptocurrency #dualprice #markprice #tradedprice",<br>"json_metadata":" \"tags\":[\"trade\",<br>\"mining\",<br>\"education\",<br>\"bitforex\",<br>\"cryptocurrency\",<br>\"dualprice\",<br>\"markprice\",<br>\"tradedprice\" ,<br>\"image\":[\"https:\/\/cdn.steemitimages.com\/DQmY5Xbss9oaVJ2b27ss732hLeqjrPK8XUsZzfk3FpvX1xv\/weqeqw.png\" ,<br>\"links\":[\"bit.ly\/2uDhEmG\" ,<br>\"app\":\"steemit\/0.2\",<br>\"format\":\"markdown\" " |
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