Mark price vs index price vs quote price
Last updated
Last updated
One concept fundamental to nearly all trading is "spread." Spread is the difference between the price at which you can buy an asset (known as the ask price) and the price at which you can sell it (known as the bid price). This difference represents the cost of executing a trade immediately (a market order).
Keeping an eye on spread is crucial for managing trading costs. A wider spread means higher costs when entering or exiting a position, as you pay more to buy an asset and receive less when selling. On Omni, you should be watching the difference between your quoted price and the mark/index price.
Coming soon: you will soon be able to use limit orders to execute with guarantees on the price you are receiving.
The Quoted Price is the specific price provided to a trader in response to a Request for Quote (RFQ). This price is the best price at which a counterparty (in Omni traders' case, OLP) is willing to execute a trade. The Quoted Price can vary depending on market conditions, trade sizing, and available liquidity. All trades on Omni - including closing positions - are executed by accepting a Quoted Price.
The Index Price represents the real-time price of an underlying asset, based on an average of prices from several major exchanges. This price reflects the true market value of the asset and serves as a key input for calculating the Mark Price.
The Mark Price is a calculated value used to determine the fair price of an asset in a perpetual futures contract. It is derived from a combination of the underlying asset's spot price (Index Price) and additional data (e.g. funding rates). The Mark Price is used as the reference price for margin calculations and liquidations.
