Index Price vs Premium Index
Quick comparison to help you distinguish these two crypto terms.
Index Price
intermediate
strategy
The fair value of the underlying asset used as the reference for perpetual futures pricing, calculated as a weighted average of spot prices across multiple major exchanges to prevent manipulation.
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intermediate
strategy
The percentage difference between the mark price and the index price; the primary component of the funding rate calculation; reflects the balance of demand between long and short sides of the perpetual futures market.
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