I'm trying to understand the distinction between the terms 'mark' and 'bid' in a specific context. Could someone explain the difference between these two terms?
6 answers
HallyuHeroLegendaryStarShine
Wed Dec 04 2024
As a buyer, you would pay less compared to the ask price, resulting in cost savings.
GyeongjuGlorious
Wed Dec 04 2024
The mark price represents a midpoint between the bid and the ask.
CryptoPioneer
Wed Dec 04 2024
Taking an options contract as an example, if the bid is $2.00 and the ask is $2.10, the mark price would be calculated as $2.01.
henry_taylor_architect
Wed Dec 04 2024
This pricing mechanism offers advantages to both buyers and sellers in the market.
Davide
Tue Dec 03 2024
Conversely, as a seller, you would receive more than the bid price, translating to higher profits.