What is the difference between Mark Price and Last Price?
To prevent sudden spikes and unnecessary liquidations during periods of high volatility, Phemex Futures employs both Last Price and Mark Price mechanisms.
The Last Price refers to the most recent transaction price at which the contract was traded. It represents the price of the last trade recorded in the trading history. The Last Price is utilized for computing your realized PnL (Profit and Loss).
On the other hand, the Mark Price is derived from a blend of funding data and a pool of price data sourced from various spot exchanges. Your liquidation prices and unrealized PnL are determined based on the Mark Price.
You have the option to switch between these two prices both on the app and the website.
WEB:
Click [Last Price] on the trading chart to switch.
APP:
Go to [Contract], tap the chart icon, and click the setting icon. Then, tick [Mark Price] to switch. (The default setting is Last Price)
Liquidation occurs when the sum of the Initial Margin, Realized PnL, and Unrealized PnL falls below the Maintenance Margin. It's crucial to understand that changes in the maintenance margin directly impact the liquidation price. The positions in the same settlement currency will be liquidated based on the Margin Level {Margin Level = Position Equity / Maintenance Margin}. When the margin level reaches 100%, liquidation will be triggered.
-In cross mode , Position Equity = Total Position Margin + Available Balance + Total Unrealized PNL - Order Used
-In isolated mode , Position Equity = Initial Margin + Unrealized PNL.
To prevent liquidation (i.e., when the margin level reaches 100%, only MM left), users should either add more margin or reduce their positions.
How are Liquidation Prices calculated?
Why is the fill price (bankruptcy price) different from the liquidation price?
