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What Is the Purpose of ‘Index Price’ in Derivatives Trading?

The index price is the robust, aggregated price of the underlying asset from multiple exchanges, used for fair valuation and settlement.
Greeks.Live20.11.25

What Is the Purpose of ‘Index Price’ in Derivatives Trading?

The index price is the composite, real-time price of the underlying asset, calculated by aggregating the spot prices from a basket of major, high-liquidity exchanges. Its purpose is to serve as the most robust and manipulation-resistant representation of the asset's true market value.

It is used by perpetual swaps and futures to calculate the mark price, the funding rate, and the final settlement price.

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