Skip to main content

In What Scenario Would the Mark Price and the Last Traded Price Be Identical?

The Mark Price and the Last Traded Price would be identical in a perfectly efficient, highly liquid market where the perpetual contract price is trading exactly at the Index Price, and the exchange's smoothing mechanism (like the funding rate component) has no effect. This is a theoretical ideal, rarely achieved in practice.

Why Do Exchanges Use a Mark Price Instead of the Last Traded Price for Liquidations?
How Does a Price Feed from an Oracle Differ from the Exchange’s Last Traded Price?
What Is the Difference between the ‘Last Traded Price’ and the ‘Index Price’ on a Crypto Futures Exchange?
Why Is the Mark Price Used in the Funding Rate Calculation Instead of the Last Traded Price?