How to Interpret OKX Trading Prices? A Guide to the Three Key Cryptocurrency Prices
When trading on OKX, you’ll encounter three distinct price types: latest traded price, index price, and mark price. Each serves a unique purpose in cryptocurrency trading, especially in futures and derivatives markets. Let’s break them down.
1. Latest Traded Price
The latest traded price is the real-time execution price of a contract based on immediate market orders. It reflects the most recent transaction in the order book and fluctuates frequently due to market activity.
Where to find it:
- Visible in the order book or trading interface under "Last Traded Price."
- Updates continuously as trades occur.
2. Index Price
The index price is a weighted average derived from multiple reputable exchanges (usually three or more). It acts as a benchmark to stabilize contracts, reducing volatility risks.
Examples:
- Coin-margined contracts are pegged to the USD index of the underlying asset.
- USDT-margined contracts are anchored to the USDT index.
Where to find it:
- Displayed on the futures trading dashboard as "Index Price."
3. Mark Price
The mark price combines the index price with a moving average of the funding rate (or "basis"). It’s critical for:
- Calculating unrealized P&L.
- Determining liquidation thresholds (note: liquidations are triggered by mark price, not last traded price).
Why it matters:
OKX’s mark-price mechanism smooths short-term volatility, protecting traders from market manipulation and unnecessary liquidations.
👉 Learn how OKX’s liquidation mechanism safeguards traders
Key Differences Between OKX’s Three Price Types
| Feature | Latest Traded Price | Index Price | Mark Price |
|------------------|---------------------|-------------------|---------------------|
| Definition | Real-time execution | Multi-exchange average | Index + funding rate adjustment |
| Purpose | Immediate trades | Benchmark stability | P&L and liquidation |
| Volatility | High | Moderate | Smoothed |
FAQs About OKX Trading Prices
Q1: Which price determines liquidations?
A: Liquidations are based on the mark price, not the latest traded price, to prevent unfair triggers from short-term volatility.
Q2: How often is the index price updated?
A: OKX’s index price refreshes in real-time, drawing data from top exchanges like Binance and Coinbase.
Q3: Why does the mark price differ from the trading price?
A: The mark price includes a moving average to filter manipulation, while the trading price reflects immediate market demand.
👉 Explore OKX’s advanced trading tools
Why OKX’s Price Mechanisms Stand Out
- Anti-manipulation: The mark-price system deters "whale" tactics.
- Transparency: Index sources are publicly disclosed.
- User Protection: Reduced unnecessary liquidations for fairer trading.
Pro Tip: Always monitor the mark price for risk management in futures trading.