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What Is the Difference between Mark Price and Index Price in Derivatives Trading?

The index price is the average price of the underlying asset across several major spot exchanges, used as a reference for the asset's true market value. The mark price is an adjusted price derived from the index price and the contract's moving average, used by the exchange to calculate a trader's unrealized profit/loss and trigger liquidations.

This prevents manipulation based on a single exchange's price.

How Does the Index Price Differ from the ‘Mark Price’ Used in Perpetual Futures Trading?
How Does a Large Deviation between Mark Price and Last Traded Price Trigger a Warning?
Why Is It Necessary to Use a Multi-Exchange Average (Index Price) Instead of a Single Exchange’s Spot Price?
What Is the Difference between a Spot Price Oracle and a Volume-Weighted Average Price (VWAP) Oracle?