Mark Price, Index Price, and Last Price
Distinguish derivative reference prices and learn which one drives each account event.
Key takeaways
- Label every price reference.
- Review index and mark formulas.
- Map triggers and liquidation separately.
Mark Price, Index Price, and Last Price: the decision context
Last price is the latest venue trade and may reflect a small or isolated transaction. Check timestamp and size before broader interpretation.
An index combines external markets under published rules. Verify constituents, weights, outlier handling, update frequency, and fallbacks.
What evidence deserves attention
A mark derives from an index and other components and often drives P&L or liquidation. Its current venue formula determines stress behavior.
A repeatable review workflow
When a last trade spikes but the account liquidates later, align the venue's last, index, and mark series by timestamp and identify which crossed the documented threshold. Recompute the index basket inputs and mark premium where data are available, then match the event to the account log.
Limits, failure modes, and risk
Charts, stops, settlement, and margin may use different references. Map each function to documentation and reconcile events with timestamped series.
Index constituents can be stale, excluded, or weighted differently, and mark formulas may be capped or smoothed. Public charts may sample too coarsely to show the triggering value, while venue documentation and formulas can change over time.
Frequently asked questions
What is the first thing to distinguish in Mark Price, Index Price, and Last Price?
Start with this article's central checkpoint: Label every price reference. Then verify the definition and scope against the cited sources.
How can I check Mark Price, Index Price, and Last Price in practice?
Use the worked procedure in the article and keep these two checks together: Review index and mark formulas. Map triggers and liquidation separately.
What is the most important limitation?
Reference prices can diverge during stress and trigger events invisible on a last-price chart.
How this article was prepared
This educational article was prepared with AI assistance, then reviewed editorially for clarity and checked against the cited source material.