What is mark price vs last traded price on Bybit?

Bybit's mark price prevents unfair liquidations by using a weighted average from major exchanges, unlike the last traded price, which can be skewed by low liquidity or large orders.

Jul 28, 2025 at 06:35 pm

Understanding Mark Price on Bybit

The mark price on Bybit is a critical mechanism designed to prevent unfair liquidations and reduce market manipulation. Unlike the last traded price, the mark price reflects the fair value of a contract based on external market data. Bybit calculates this by pulling price feeds from multiple reputable spot exchanges such as Binance, Kraken, and Coinbase. These sources are weighted to ensure accuracy and minimize slippage during volatile conditions.

• It updates every few seconds to remain current.
• It includes a decay factor to smooth out sudden spikes or dips.
• It is used to determine liquidation levels and unrealized profit/loss (PnL) for open positions.
  

  This ensures traders are not liquidated due to temporary price distortions on a single exchange—a common issue in low-liquidity markets.

  What Is Last Traded Price?

  
  The last traded price is simply the most recent price at which a trade occurred on Bybit’s order book. It reflects real-time market activity but can be misleading during periods of low volume or high volatility. For example, if a large market order executes against thin liquidity, the last traded price might jump sharply without representing the actual fair value of the asset.
• It updates instantly with every trade.
• It is influenced by immediate supply and demand imbalances.
• It does not account for broader market conditions or external data.
  

  Traders often misinterpret this as the "true" price, but it lacks the stability needed for accurate risk management.

  Why the Difference Matters in Risk Management

  
  Bybit uses the mark price, not the last traded price, to calculate when a position should be liquidated. This distinction protects users from being unfairly liquidated during flash crashes or pump-and-dump scenarios. If the system relied solely on the last traded price, a single large order could trigger cascading liquidations across the platform—even if the broader market hadn’t moved significantly.
• Liquidation engine checks mark price against your position’s maintenance margin.
• Unrealized PnL calculations use mark price to show realistic gains or losses.
• Funding rate calculations also reference mark price to ensure fairness between longs and shorts.
  

  This design aligns with institutional-grade risk frameworks used in traditional finance.

  How to View Mark Price vs Last Traded Price on Bybit Interface

  
  To see both prices clearly on Bybit:
• Open the contract trading page (e.g., BTCUSD Perpetual).
• Look directly under the price chart—mark price appears in green text.
• The last traded price sits beside it, usually in white or gray depending on theme.
• Hover over the price area to see a tooltip showing both values and the percentage difference.
• In the positions tab, each open position displays entry price, mark price, and unrealized PnL based on mark price.
  

  These visual cues help traders make informed decisions without needing external tools.

  Practical Example: When Mark Price and Last Traded Price Diverge

  
  Suppose BTCUSD perpetual contract shows:
• Last traded price: $65,000 (due to a sudden sell wall hit)
• Mark price: $66,200 (based on average of Binance, Kraken, etc.)
  

  If you’re holding a long position with a liquidation price of $65,500:

  • Your position will not be liquidated because the mark price ($66,200) is above your liquidation level.
  • Even though the last traded price dipped below your liquidation threshold, the system ignores it for risk purposes.

  This prevents “wicked” liquidations caused by momentary illiquidity or whale-driven price shocks.

  Frequently Asked Questions

  Q: Can I set stop-loss orders using mark price instead of last traded price?
  
  Yes. On Bybit, when placing a stop-loss order, you can choose between "Last Price" and "Mark Price" as the trigger. Selecting Mark Price ensures your stop-loss activates based on fair value, reducing the chance of premature triggering during volatile spikes.

  Q: Does funding rate depend on mark price or last traded price?
  
  Funding rate on Bybit is calculated using the mark price. Specifically, it compares the perpetual contract’s price to the underlying spot index (which feeds into the mark price). This ensures funding reflects true market conditions, not just Bybit’s internal order flow.

  Q: Why does my unrealized PnL change even when no trades happen?
  
  Unrealized PnL updates based on the mark price, which refreshes every few seconds. Even if no new trades occur on Bybit, changes in external exchange prices will shift the mark price—and thus your unrealized PnL—automatically.

  Q: Is mark price the same across all perpetual contracts on Bybit?
  
  No. Each contract (e.g., BTCUSD, ETHUSD) has its own mark price, derived from the relevant spot index. For instance, BTCUSD uses a BTC spot index, while ETHUSD uses an ETH spot index—each sourced from multiple exchanges independently.