Mark price

What is "Mark price"?

Mark price is a fair-value estimate used by derivatives venues for risk controls and liquidation logic.

Why is it important?

• It is central to risk and liquidation mechanisms.
• It helps reduce sensitivity to isolated trade spikes.
• It provides a stable reference for margin and PnL-related calculations.

How is it calculated?

• Mark price is computed using an exchange-defined fair-value model.
• The model typically uses index-price inputs and additional stabilizing adjustments.
• Exact components and smoothing logic depend on the exchange methodology.