How to Choose Between Latest Price and Mark Price in Take Profit & Stop Loss

CoinEx offers two trigger price options for Futures Take-Profit and Stop-Loss (TP/SL). After opening a position, you can set TP/SL and choose “Latest Price” or “Mark price” as the trigger price.

 

What are the "Latest Price" and "Mark Price"? 

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1. Latest Price

Latest Price refers to the real-time trading price of Futures market.

2. Mark Price 

Mark Price is calculated using the Index Price and the Funding Fee Basis Rate that decreases with time. CoinEx uses Mark Price as the reference price to determine whether forced liquidation occurs, which effectively protects users from unnecessary liquidation in the event of abnormal price swings caused by market manipulation or insufficient liquidity. For more details, please refer to What’s Futures Mark Price

 

Usage Scenarios, Pros & Cons of “Latest Price” and “Mark Price”

1. Set "Latest Price" as the trigger price

Pros: When you set "Latest Price" as the trigger price for your TP/SL order, the execution price will be much closer to your expected trading price.  

Cons: As forced liquidation is subject to "Mark Price" rather than "Latest Price", setting the latter as the trigger price means it may happen that when "Mark Price" hits the liquidation price, the "Latest Price" is still away from your SL trigger price. The impact is more pronounced when your SL trigger price is close to the liquidation price.

Usage Scenario: If you want the trigger price to be closer to your expected transaction (trading) price, you can choose “Latest Price" for your "Take Profit" order, so that the order can be executed faster.

2. Set "Mark Price" as the trigger price

Pros: Since CoinEx uses Mark Price to determine whether forced liquidation occurs, setting "Mark Price" as the trigger price reduces the risks of forced liquidation in spite of a stop loss.

Cons: TP/SL orders are executed at the "Latest Price", so when you set "Mark Price" as the trigger price, the actual execution price of your TP/SL order might deviate from your expected one due to price difference between "Mark Price" and "Latest Price".

Usage Scenario: It is recommended to select “Mark Price” as the trigger price of "Stop Loss", which can effectively reduce the risk of forced liquidation under abnormal market fluctuations.

 

How to Set Latest Price and Mark Price in Take Profit & Stop Loss?

1. Log in to CoinEx official website (https://www.coinex.com), click [Futures] at the top navigation, and set [Take Profit/Stop Loss] in [Current Position].

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2. Select Price Type and fill in the trigger price (stop price). "Mark Price" is set as default, but you can choose between "Mark Price" and "Latest Price" according to your need.

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Note: To reduce the risk caused by rapid market fluctuations, please set Take Profit & Stop Loss in Futures Trading in time after opening the position.