BitMEX employs a unique system called Fair Price Marking to avoid unnecessary liquidations in its highly leveraged products. Without this system, unnecessary liquidations may occur if the market is being manipulated, is illiquid, or the Mark Price swings unnecessarily relative to its Index Price.
How is BitMEX Mark price calculated?
This is the formulas used for calculating the mark price:
- Funding Basis = Funding Rate * (Time Until Funding / Funding Interval)
- Fair Price = Index Price * (1 + Funding Basis)
What is Mark price in crypto trading?
Mark Price is the price at which any open position is marked for the computation of Unrealised PnL and Liquidation. Mark Price is employed to avoid unwarranted liquidations which could result from high volatility of crypto-assets.
How is the mark price calculated?
The mark price is equal to the LAST price unless: Ask < Last – the mark price is equal to the ASK price. Bid > Last – the mark price is equal to the BID price. The midpoint between the current bid and ask.
Does BitMEX have spot trading?
BitMEX is building out the diversity of products on the derivatives side, with its derivatives offering remaining at the heart of the business, but Spot trading will be added as a new segment with the launch of full-service spot capabilities globally to provide users with a way to buy and sell crypto assets.
What is fair price of future?
Voiceover: The fair value of a futures contract is the price of the contract at which a buyer of the stock would be neutral between buying it on in an actual stock exchange and actually buying the stock and agreeing to buy the futures contract.
What is Mark price and last price?
What Are the Last Price and Mark Price? The Last price is the latest transaction price of the contract. … The mark price is calculated based on the spot index price and the funding rate, only influencing the liquidation price and unrealized PnL.
What is the difference between mark price and index price?
Index Price is an important reference when you are investing. It’s the average market price of cryptocurrencies on major exchanges. … Mark Price is the price used for mark-to-market PnL calculation and platform liquidation; Mark price is designed to be fair and manipulation resistant.
What does Mark price mean in Binance?
The mark price is an estimated fair value of an asset derived from its spot price and other variables. … If the mark price is below the forward price at expiration, you will lose money and the short position profits.
Can you long and short at the same time on BitMEX?
On some of our competitor’s exchanges, users are able to open both a long and a short position on the same contract at the same time. Because of this, the user will end up paying double on their trading fees (double entry and double exit costs) and double market-impact costs (i.e. crossing the spread).
How much money does BitMEX make?
Bitmex does $4B in volume every day. That’s like $4M of revenue every single day with 0.1% fees and more than $1B in revenue every year. With that much money, it’s very easy to build a system that can support peak capacities.
Can I short on BitMEX?
You can go long or short on these contracts by simply buying or selling them. You can sell even if you don’t hold any contracts, making BitMEX a valuable tool for shorting purposes.