Mark price vs last price
The mark price of a crypto derivative is a reference price computed by the exchange from the spot index and the contract's own market, used to value open positions and to trigger liquidations. The last price is simply the price of the most recent trade. Separating the two protects positions from being liquidated by a brief spike on one venue.
Senzoukria · Glossary · Updated September 2026
At a glance
- Last price
- Price of the latest trade on the contract
- Mark price (Binance USDⓈ-M)
- Median(Price 1, Price 2, contract price)
- Used for
- Unrealized P&L and liquidation
- Purpose
- Avoid liquidations caused by manipulation or thin-book spikes
Why two prices
On a leveraged contract, a position is liquidated when its losses consume the margin. If that loss were computed from the last traded price, a single large market order sweeping a thin book could push the last price far enough, for a second, to liquidate many positions, which would then add more market orders. Using a reference that leans on the spot index across several exchanges makes that much harder. Binance states that the mark price mechanism exists to prevent unnecessary liquidations and discourage manipulation.
How Binance computes it
For USDⓈ-M futures, Binance publishes the mark price as the median of three values: Price 1, the price index adjusted by the last funding rate prorated to the time until the next funding; Price 2, the price index plus a 30-second moving average of the basis; and the contract price. Taking the median means one abnormal input cannot move the mark on its own. Other exchanges use their own formulas built on the same idea: an index of spot prices plus a smoothed premium.
- Unrealized P&L shown on a position is computed from the mark price, not the last price.
- Liquidation is triggered when the mark price reaches the liquidation price.
- Stop orders can usually be set to trigger on either the last price or the mark price; the choice changes when they fire.
Reading the gap
Most of the time the mark and last prices differ by a few ticks. A large gap means the contract is trading away from the index, for instance during a burst of aggression on the perpetual that spot has not followed. A chart built from trades, such as a footprint, shows the last-price path; liquidation levels relate to the mark, so they can be reached a little earlier or later than the traded price suggests.
In Senzoukria
Crypto footprints, heatmaps and DOM panels in the desktop are built from each exchange's public trades and order book, so every price on them is a traded or quoted price of that venue. The mark price, the index price and liquidation levels are not displayed, and no crypto position is held in the software, since crypto charts are analysis only with no order routing.
Related
In the same section
- Linear vs inverse contracts
- Mark-to-market
- Margin call
- Market by order
- Margin
- Market by price
- Index-to-futures mapping
- Market data API
Sources
- Binance: What Is the Mark Price and Price Index (2026-09-25)
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Frequently asked questions
- Why was my position liquidated when the chart never touched my liquidation price?
- Because liquidation is triggered by the mark price, which can differ from the last traded price shown on a trade-based chart. It is also possible that the liquidation price moved, for example because of funding payments or margin changes in cross margin mode.
- Should my stop trigger on the mark price or the last price?
- A stop on the last price reacts to actual trades, including brief spikes. A stop on the mark price is less sensitive to spikes on one venue but can lag the traded price. The choice depends on whether the stop is meant to follow the tape or to avoid wicks.