You should understand that there are two prices in cryptocurrency: mark price and final price. Both have very different meanings and use cases, so it’s important to understand the difference between the two and when to use one.
In this article, we will discuss each one separately and explain how they differ in terms of trading strategies.
cryptocurrency price
Price is the most important thing in cryptocurrency. Price is the first thing people see when looking at the cryptocurrency market. This is because investors want to know the value of the coin and when they will get profit after investing in the coin. You also want to know if the coin’s value will continue to rise or if it will hit a bottom, and know exactly when to sell your coin.
cryptocurrency price luna price It is highly volatile and there is no way to predict when the value will go up or down. Everything is based on market demand. Today the market may value one coin more than another, but tomorrow the value may be reversed.
Prices play a very important role in cryptocurrencies as they make people interested and willing to invest in various cryptocurrencies.
What does mark price mean in cryptocurrencies?
Mark Price refers to the current market price of a product or service. The word can be found in the financial and manufacturing industries, where prices are often displayed in both current dollars and original or previous amounts. It’s also a useful tool for comparing prices over different time periods, as it allows you to see if you’re overpaying for anything from yesterday’s sales prices.
From a cryptocurrency perspective, the mark price is especially important because cryptocurrencies are all about market value. Cryptocurrencies fluctuate like the stock market, but they don’t have the same safety nets. If you sell your cryptocurrency at an exorbitant rate and the market crashes shortly afterward, your investment could be in trouble.
Therefore, it is important to know the value of your cryptocurrency at any time. Mark prices can help here. The Mark Price shows how much people are currently willing to pay for your coin.
What is the final price of cryptocurrencies?
Last price is a term that refers to the lowest price at which a cryptocurrency exchange sold an asset. In other words, the final price indicates the lowest amount that one unit of a particular cryptocurrency can be purchased.
The final price of a coin is the latest price in the market, while the mark price is based on previous coin sales. If you buy coins at the last price, you will not get a deal because you will be paying more than the market rate. Save money by using Mark Price instead.
Last Price is the most common order type for cryptocurrency trading pairs such as BTC USDT. That is when someone requests to exchange their current holdings for another cryptocurrency. If someone wants to trade their bitcoin for litecoin, they will set a final price order.
Pros and Cons – Using “Last Price” for Cryptocurrency Trigger Prices
Let’s take a look at the pros and cons of using “Last Price” as the trigger price in cryptocurrency trading.
Strong Points:
- Choosing to use the closing price to determine when to buy or sell gives you a better idea of how the market is behaving.
- This method also avoids paying large fees that would be incurred if the order was triggered by a limit order. Cryptocurrencies do not have limit orders, so this is less important than traditional markets.
- The only thing that can happen with this method is that the final price (both buy and sell) may change before the order is executed.
Cons:
- Due to price fluctuations, it may take longer to complete your order.
- A big drawback of this strategy is that you may miss a good buying opportunity because you are waiting for the last price.
Pros and Cons – Using “Mark Prices” for Cryptocurrency Trigger Prices
Strong Points
- This is a way of setting a threshold for your own investment decisions, and if a particular coin crosses that threshold, it signals to reduce risk by selling some or all of the coin. .
- This helps define the range of actions that will occur if the investment goes in the opposite direction, allowing you to make better decisions about what actions to take.
- It helps you avoid making emotional decisions and avoids buying highs and selling lows because it locks your thinking based on pre-determined price levels.
- Having an exit strategy and trigger price helps you stay disciplined and consistent by making it easier to follow that plan even when things are going your way.
Cons
- Each coin has its own volatility and market value, so you may need to enter different thresholds for each coin.
Factors to Consider Whether to Use Mark Price Until Final Price
There are a few things to consider when deciding whether to use Mark Price or Final Price.
First, you need to determine the purpose of your order. If you want to sell high, use the final price. If you want to sell cheaply, please use mark price. If you want to buy high and sell low, set both.
The next thing to consider is market volatility. In more volatile markets, we recommend using faster mark prices. In lower volatility markets, it is quicker to use the closing price because the price is more likely to move into the profit band before the order is filled.
Last Price is great for quickly entering and exiting trades (although manual trades may be preferable to automated trades). If you want to enter or exit a trade immediately, but don’t need to take advantage of price fluctuations, consider using the last price.
Which is better? Mark price or final price?
Between the final price and the mark price, it’s hard to tell which is better. Last prices are more convenient for trading, especially for day traders. With the last price, you can instantly measure how much you lost or profited on the previous trade, and set your next trade at a certain percentage of that loss or profit.
If the last trade was $100 and the current price is $90, the next trade will be 10% cheaper to make up for the loss. Mark price is a better choice if you want to see the market trend or if you are holding for a long time.
So if you’re looking at the mark price, it’s the amount of bitcoin that matters, not how much bitcoin has been converted to cash. This is useful for those who are more interested in crypto investments than cash value.