What Is the Difference between the Last Traded Price and the Mark Price?

The Last Traded Price is the price at which the most recent transaction occurred on the futures exchange. It reflects the current market supply and demand.

The Mark Price, as discussed, is the calculated fair price used for margin and liquidation purposes. While the Last Traded Price can be highly volatile, the Mark Price is smoothed by incorporating the Index Price and a time-weighted average premium, making it a more reliable measure of a position's true value.