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Define ‘Mark Price’ in Futures Trading

An estimated fair value of a futures contract, calculated using spot and moving average data, used for P&L and liquidation triggers.
Greeks.Live19.11.25

Define ‘Mark Price’ in Futures Trading.

The Mark Price is an estimated fair value of a futures contract, used by exchanges to prevent unnecessary liquidations caused by temporary market manipulation or illiquidity. It is typically calculated using a combination of the contract's spot price and a moving average of the futures price.

Exchanges use the Mark Price, not the Last Traded Price, to calculate a trader's unrealized profit and loss (P&L) and to determine when liquidation should occur.

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