Mark Price Mechanics: A Must Read for Derivatives Traders

in crypto •  6 years ago 

Mark Price is the price that is utilized for computing margin requirements. A few exchanges basically state that they mark everything at midpoint. Which clearly considers misusing liquidation component for those with huge pockets. Bitmex states that they intend to wipe out plausibility of manhandling the framework by intentionally not taking midpoint for margin calculations whenever there's a big discrepancy between observed market prices and theoretical prices. Bitmex is rock solid and I have been using it as of late to hedge 6 figures USD positions. Despite bitcoin price volatility, not a single USD was lost due to margin call losses. Their liquidation engine is good and its aim is to protect those who manage their positions better: https://medium.com/mark-price/mark-price-e8f748c9b549

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6 years ago by

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