Users are able to view two (2) different prices when trading in Flipster:
- Mid Price
- Reference point to trigger orders in Flipster.
- Trigger orders include Take-Profit & Stop- Loss orders
- Mark Price
- Refers to an estimated true value of a contract and is the trigger for liquidation (refer to this article here for more information)
The default price shown on the Flipster trading chart is the Mid Price. On the other hand, liquidation is triggered by the Mark Price. Once the Mark Price reaches the liquidation price of the position, the position will be liquidated.
As such, the Mark Price can trigger the position’s liquidation first before the Mid Price can trigger the stop-loss (which references the Mid Price). Therefore, it can cause confusion to users as the candlestick shown did not reflect the triggering of liquidation price accurately
The key here is to ensure that the user is looking at the correct trading chart, to view either the Mid Price or the Mark price.
Example:
Position: BUY
Stop-loss: 60,200 USDT
Liquidation Price: 60,000 USDT
If the Mark Price has already reached 60,000 USDT while the Mid Price is still at 60,300 USDT, then liquidation will happen. At the same time, the stop-loss order is canceled.
Users can view the Mid Price chart or the Mark Price chart via a web browser or mobile app by following the steps of the image below to switch from Mid Price to Mark Price and vice versa.
On web browser
On the mobile app
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.