Skip to main content

How Do the Weights of Exchanges in an Index Price Calculation Typically Vary?

The weights of constituent exchanges in an Index Price calculation typically vary based on their trading volume and market quality. Exchanges with higher, consistent trading volume and robust market integrity often receive a higher weighting, as their prices are considered more representative of the true market value.

Some methodologies may also adjust weights to penalize exchanges exhibiting poor performance or low liquidity.

What Is a Common Method Used to Weight the Prices from Different Exchanges in a Crypto Index?
If an Exchange Is Delisted, How Does That Affect a Composite Index Price?
Why Is Volume-Weighting Often Used in Calculating a Crypto Settlement Index?
How Does a Tiered Fee Structure for Market Makers Promote Higher Trading Volume?