What factors can influence the mark price on BitMEX and how can traders take advantage of it?

1 answers

• Dec 25, 2021 · 3 years ago
  The mark price on BitMEX is influenced by various factors. One factor is the funding rate, which is determined by the difference between the interest rates of the two underlying assets. If the funding rate is positive, it means that the interest rate of the asset being bought is higher than the interest rate of the asset being sold, which can push the mark price higher. Traders can take advantage of the mark price by using it to determine the fair value of the futures contract. If the mark price is significantly higher than the fair value, traders can consider selling the futures contract to profit from the price difference. However, it's important to note that the mark price can be volatile and may not always accurately reflect the fair value of the contract.
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