What Is the Difference between the ‘Last Traded Price’ and the ‘Index Price’ on a Crypto Futures Exchange?

The last traded price is the price at which the most recent futures contract trade was executed on that specific futures exchange. It reflects the current market price for the derivative.

The index price, however, is a composite price calculated from multiple underlying spot exchanges and is used as the reference price for risk management (like liquidations) and, crucially, as the final settlement price for cash-settled contracts. The last traded price fluctuates around the index price.