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What Is a “Price Dislocation” and How Does It Affect Margin Calls?

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.

How Does a Volume-Weighted Average Price (VWAP) Differ from a Simple Average in Settlement?
What Is the Relationship between a Cryptocurrency’s Trading Volume and Its Potential for High Slippage?
How Does a Tiered Fee Structure for Market Makers Promote Higher Trading Volume?
Does a High Volume of Small Trades Necessarily Indicate High Market Depth?