Exchange Price Differences

How spot price, futures price, index price and mark price differences affect crypto trend-following execution.

Crypto markets often show several prices for the same asset: spot price, perpetual contract price, index price and mark price. A rule-based system must define which one it uses.

Common price types

Price Typical use
Spot price Direct market price on a spot venue.
Contract price Tradable futures or perpetual price.
Index price Composite reference price from multiple venues.
Mark price Risk-control price used by exchanges for liquidation and unrealized PnL.

Why this matters

A breakout on one exchange may not appear on another. A stop based on last traded price may behave differently from a liquidation system based on mark price.

Practical rule

Use the same price source for research, signal generation and review whenever possible. If execution uses another price, record the difference.