What is Index Price?
An Index Price is a weighted average of spot prices aggregated from multiple major exchanges, used to provide an undistorted reference price.
It's the equivalent of a reference quotation that reflects price differences between exchanges.
Why do we need Index Prices?
• Since exchanges have different execution histories for each exchange, temporary spikes and deviations from a reasonable reference price can occur when a large volume of trading occurs on a particular exchange.
• If forced liquidation and funding fees are calculated based on the execution history of each exchange, liquidation may occur at a disparity from the reasonable reference price. This is where the index price comes in.
• It is used for calculating liquidation and funding fees.
💡In futures trading, position liquidation is executed based on the Index Price.
Therefore, even if the market price temporarily reaches the liquidation price, a forced liquidation will not occur if the Index Price does not reach that level.
⚠️ Please note that •The Index Price changes in real-time. •Because inaccurate index prices can skew liquidation/funding, we rely on reliable prices aggregated from multiple major exchanges.
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[Web] How to check the Index Price?
1. The index price can be found at the bottom of the coin price. Select [More] to go to the index price page.
2. On the Index Price page, you can see the price per pair.
[App] How to check the Index Price?
1. To check the index price, select the price at the bottom of the coin price.
2. Select [Confirm].
3. You can check the price by pair on the index price page.
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