In futures trading, users often see two prices: Last Price and Mark Price.
Both prices are important, but they serve different purposes.
The Last Price mainly reflects the latest market transaction, while the Mark Price is more commonly used for risk control, such as unrealized PnL calculation and liquidation risk assessment.
Simply put:
Last Price = The most recent traded price in the market.
Mark Price = A reference price used by the system for risk assessment.
1. What Is the Last Price?
The Last Price refers to the price of the most recent executed order in the futures market.
It changes continuously as buy and sell orders are filled, and directly reflects the current market trading price.
For example:
If the most recent BTC/USDT futures trade was executed at 100,000 USDT, the Last Price displayed on the page may be 100,000 USDT.
The Last Price mainly helps users understand the current market trading level.
2. What Is the Mark Price?
The Mark Price is a reference price calculated by the system according to platform rules. It is usually used to reflect the fair market price more stably.
The Mark Price does not rely only on a single traded price. It may take into account factors such as market price, index price, funding rate, and other parameters, subject to the platform’s actual rules.
In futures trading, the Mark Price is commonly used to:
Calculate unrealized PnL;
Assess position risk status;
Evaluate liquidation risk;
Reduce the impact of abnormal price fluctuations on position risk assessment.
3. Why Is the Mark Price Needed?
The futures market may experience sharp short-term fluctuations. The Last Price may jump quickly due to large orders, insufficient market depth, or abnormal short-term trades.
If liquidation assessment only relied on the Last Price, user positions could be affected by abnormal short-term trades.
The purpose of the Mark Price is to reduce the impact of abnormal traded prices on risk assessment as much as possible, making position risk calculation closer to the fair market level.
Simply put:
The Mark Price helps the system assess position risk more smoothly.
4. Difference Between Last Price and Mark Price
Item | Last Price | Mark Price |
Meaning | The most recent traded price | A risk reference price calculated by the system |
Price Movement | Changes quickly with real-time trades | Relatively more stable |
Main Use | Shows the current market trading level | Used for unrealized PnL calculation and liquidation risk assessment |
Impact on Liquidation | Usually not the only basis | Usually an important reference for liquidation risk |
Impact of Abnormal Trades | More directly affected | Helps reduce the impact of abnormal trades |
5. Why Are the Last Price and Mark Price Different?
During volatile market conditions, the Last Price and Mark Price may differ.
Common reasons include:
Rapid short-term market movements;
Insufficient order book depth;
Large orders causing the Last Price to jump;
Differences between index price and platform traded price;
Changes in funding rate or market risk parameters.
Therefore, when users view their positions, they may notice that the Last Price changes quickly while the Mark Price moves relatively more steadily.
6. Which Price Affects Liquidation?
In futures trading, liquidation usually does not rely only on the latest traded price. Instead, it refers to the risk price standard defined by system rules, such as the Mark Price.
This means that even if the Last Price experiences abnormal short-term fluctuations, the system will try to use the Mark Price for a more reasonable risk assessment.
When monitoring liquidation risk, users should pay close attention to:
Mark Price;
Liquidation Price;
Margin changes;
Position risk status.
The specific liquidation assessment standard shall be subject to the display on the 100X App and the system’s actual execution rules.
7. Example
Assume a user opens a long position when the BTC price is 100,000 USDT.
During a short period of market volatility, the Last Price briefly drops to 99,500 USDT, while the Mark Price may still be 99,800 USDT.
At this time, the Last Price and Mark Price shown to the user may be different.
If the system performs position risk assessment, it will usually refer to the Mark Price or other rule-based prices, rather than relying only on one latest traded price.
8. What Should Users Focus On?
When trading futures, users should not only watch the Last Price, but also pay attention to the Mark Price.
Users should pay special attention to Mark Price changes in the following situations:
The position is close to the liquidation price;
The market is moving rapidly;
The user is using relatively high leverage;
The user is holding a large position;
Market depth is weak or price jumps are obvious.
The closer the Mark Price is to the Liquidation Price, the higher the position risk usually is.
9. Risk Reminder
The Mark Price can help reduce the impact of abnormal trades on risk assessment, but it cannot eliminate futures trading risks.
During extreme market conditions, insufficient market depth, or rapid price movements, positions may still face liquidation, slippage, or expanded losses.
Users should continuously monitor the Last Price, Mark Price, Liquidation Price, and margin changes, and control their positions reasonably based on their own risk tolerance.