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What Is the ‘Index Price’ and How Does It Relate to the Mark Price?

The index price is the average spot price of the underlying asset calculated from a weighted average of major, reputable spot exchanges. It serves as the core component of the mark price calculation.

The mark price is then derived from the index price, often with a premium or discount based on the perpetual contract's current basis, to ensure stability and fairness.

How Does the Index Price Differ from the ‘Mark Price’ Used in Perpetual Futures Trading?
What Is the Significance of the Volume-Weighted Average Price (VWAP) in Measuring Execution Quality?
What Is the Difference between Mark Price and Index Price in Derivatives Trading?
How Is ‘Volume-Weighted Average Price’ (VWAP) Used as a Benchmark for Trade Execution?