Mid Price and Mark Price
When trading on Flipster, users may see two different prices: Mid Price and Mark Price. Each serves a different purpose, and understanding the difference is important when monitoring positions, Take-Profit (TP), Stop-Loss (SL), and liquidation.
1. Mid Price
The Mid Price is the reference price used to trigger certain orders on Flipster.
- It is calculated based on the best bid and best ask prices in the order book.
- Take-Profit and Stop-Loss orders are triggered based on the Mid Price.
- The default price displayed on the Flipster trading chart is the Mid Price.
2. Mark Price
The Mark Price represents the estimated fair value of a contract and is used as the reference price for liquidation.
- Liquidation is triggered when the Mark Price reaches the position's liquidation price.
- The Mark Price is displayed separately from the Mid Price.
- For more information, please refer to Mark Price Calculation.
Why Can Liquidation Occur Before a Stop-Loss Is Triggered?
Because TP/SL orders use the Mid Price, while liquidation uses the Mark Price, the two prices may reach their respective trigger levels at different times.
For example, consider a Buy (Long) position with:
- Stop-Loss: 60,200 USDT
- Liquidation Price: 60,000 USDT
If the Mark Price reaches 60,000 USDT while the Mid Price is still 60,300 USDT, the position will be liquidated because the Mark Price has reached the liquidation price.
At this point, the Mid Price has not yet reached the Stop-Loss trigger price of 60,200 USDT. Therefore, the Stop-Loss will not be triggered before liquidation.
Once the position is liquidated, any TP/SL orders associated with that position will be canceled.
Why May the Candlestick Chart Not Show the Liquidation Price Being Reached?
By default, the Flipster trading chart displays the Mid Price. Since liquidation is triggered by the Mark Price, the candlestick chart may not show the price movement that caused the liquidation if the user is viewing the Mid Price chart.
For example, the Mark Price may reach the liquidation price while the Mid Price remains above the liquidation level. In this situation, the position can be liquidated even though the candlestick on the default Mid Price chart does not appear to have reached the liquidation price.
When investigating a liquidation or TP/SL trigger, always check which price chart is being displayed and use the corresponding reference price.
How to Switch Between Mid Price and Mark Price
Users can view either the Mid Price or Mark Price chart on both the web browser and mobile app.
On Web Browser
Follow the steps shown in the image below to switch between Mid Price and Mark Price:
On Mobile App
Follow the steps shown in the images below to switch between Mid Price and Mark Price:
Note: The examples above use USDT-quoted pairs for simplicity. The same logic applies to USD1-quoted pairs. This information is applicable to Isolated Margin Mode only.
Key Takeaway
| Price | Primary Purpose | Used to Trigger |
|---|---|---|
| Mid Price | Order trigger reference | Take-Profit and Stop-Loss |
| Mark Price | Fair-value reference | Liquidation |
Important: The price displayed on the default trading chart is the Mid Price. If you are checking a liquidation event, make sure to switch to the Mark Price chart to verify whether the Mark Price reached the liquidation price.
Risk Warning: Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.
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