Can you explain to me what the Deribit mark price represents? I'm curious about how it differs from the spot price and how it's calculated. I'm also interested in understanding why traders might rely on the Deribit mark price for their trading decisions. Additionally, I'd like to know if there are any potential risks or limitations associated with using the Deribit mark price. Can you provide some insights into how it's used in the cryptocurrency market and how it might impact traders' strategies?
The index price serves as a foundational benchmark, reflecting the overall market sentiment and trends. It is a crucial element in ensuring that the Mark Price remains grounded in reality.
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GiuliaSat Sep 07 2024
Deribit, a prominent player in the cryptocurrency derivatives market, utilizes a unique methodology for calculating its Mark Price. This approach aims to provide traders with a fair and balanced reference point for their positions.
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RaffaeleSat Sep 07 2024
The core of Deribit's Mark Price formula involves the integration of two key components: the index price and the 30-second Exponential Moving Average (EMA) of the difference between the Fair Price and the Index Price.
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AmyDavisFri Sep 06 2024
BTCC, as a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to the diverse needs of the cryptocurrency community. Among these services, BTCC's spot and futures trading platforms stand out for their reliability, security, and advanced features.
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CryptoWizardFri Sep 06 2024
Meanwhile, the Fair Price, which is derived from a complex algorithm that considers various factors such as order book depth and recent trades, offers a more dynamic and up-to-date perspective on the market.