Last Updated: March 4, 2020
Disclaimer: Margin services are provided by OKCoin Technology Company Limited and are only available to residents in certain regions. Margin services are NOT available to residents in the United States, European Union, and Singapore. Please refer to the Margin Trading User Agreement for more details and eligibility requirements.
Effective February 18, 2020 at 11:00 PM PST, we have replaced the last traded price with a mark price when calculating users' margin ratios. This is a continuation of our long-standing efforts to protect users from malicious trading activities.
What is Mark Price?
- Mark price is calculated using the spot index price and basis.
- We now use the mark price, instead of the last trade price, in calculating a user's margin ratio. This will help avoid forced-liquidations if the last traded price is maliciously manipulated in a short period of time.
How Is A Mark Price Calculated?
= Spot index price + EMA (basis)
= Spot index price + EMA [(spot best bid + spot best ask) / 2 - spot index price]
Mark price takes into account the moving averages of both spot index price and basis. The moving average mechanism smooths out abnormal price fluctuations that occur within a short period of time, reducing the chance of forced-liquidation.
Adjustments to the Current Margin System
- Margin ration calculation: the margin ratio will now be calculated with the latest mark price, instead of the last traded price.
- Estimated forced-liquidation price: forced or partial-liquidation will be triggered when the mark price, instead of the last traded price, reaches the estimated forced-liquidation price.
Thank you for your continued support.
March 4, 2020