What is Last Price and Mark Price in Binance?

　　In the world of cryptocurrency trading, Binance is one of the most popular and widely used platforms. As a trader, it is crucial to understand the different price metrics used in the platform to make informed decisions. Two of the most important price metrics in Binance are the last price and mark price. In this article, we will delve into what these terms mean and how they are used in Binance.

　　What is Last Price in Binance?

　　The last price in Binance refers to the most recent price at which a trade was executed on the platform. It is the price at which the last buyer and seller agreed to transact. This price is constantly changing as new trades are executed on the platform. The last price is a critical metric for traders as it helps them determine the current market value of a cryptocurrency.

　　The last price is displayed on the trading page of Binance and is used by traders to place buy and sell orders. When placing a buy order, traders can choose to execute the order at the last price or set a limit price, which is higher than the last price. Similarly, when placing a sell order, traders can choose to execute the order at the last price or set a limit price, which is lower than the last price.

　　What is Mark Price in Binance?

　　The mark price in Binance is a reference price that is used to calculate the funding rate for perpetual contracts. Perpetual contracts are a type of cryptocurrency derivative that allows traders to speculate on the price of a cryptocurrency without the need to own the underlying asset. The mark price is used to determine the funding rate, which is a fee that traders pay or receive based on the position they hold in the perpetual contract.

　　The mark price is calculated using a complex algorithm that takes into account the last price, funding rate, and other factors. It is designed to reflect the fair value of the perpetual contract at any given time. The mark price is displayed on the perpetual contract trading page of Binance and is used to calculate the funding rate.

　　How are Last Price and Mark Price Used in Binance?

　　The last price and mark price are two essential price metrics used in Binance. They are used in different ways depending on the type of trading activity.

　　For spot trading, the last price is used to determine the current market value of a cryptocurrency. Traders use this price to place buy and sell orders, and to monitor the market trends.

　　For perpetual contracts, the mark price is used to calculate the funding rate. Traders who hold long or short positions in perpetual contracts are subject to funding rate adjustments, which are based on the mark price.

　　In conclusion, the last price and mark price are two important price metrics used in Binance. The last price is the most recent price at which a trade was executed, while the mark price is a reference price used to calculate the funding rate for perpetual contracts. Understanding these terms is crucial for traders who want to make informed decisions and maximize their profits on the Binance platform.

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