1. Index Price
BingX adopts the Index Price as its market price to minimize the risks brought by ill-intended price manipulation and data source instability so as to ensure the maximum protection of users' interests. The BingX Index Price refers to the spot prices of major exchanges, such as Binance, FTX, Gate.io, Huobi, OKX, and MEXC. BingX will add new exchanges to or remove existing exchanges from its reference list depending on actual conditions.
2. How to calculate the Index Price
- The Index Price is calculated on the basis of spot prices of major exchanges to best ensure the platform's price stability. When the futures price deviates greatly from the spot price, the system will introduce contact prices of fair exchanges globally as constituents for a better calculation to avoid failed orders.
- The system will adjust the price sources and their respective weight in the calculation based on factors such as how much they deviate from the median price and how often they are updated. As a result, there's a possibility of price discontinuity
- To avoid price manipulation or the instability of price sources, before BingX makes a comprehensive calculation, BingX will determine if the price sources are abnormal. If so, the abnormal price will not be included in the Index Price calculation.
3. How to determine if the price is abnormal
- When the deviation between the latest price of a certain exchange and the median of all spot price sources is greater than the tolerance threshold (1%), it will be seen as an abnormal price that may be maliciously manipulated, and will not be included in the Index Price calculation, i.e., the exchange weight will be set to zero.
- If one exchange has no updates for 60 seconds, the weight of this exchange will be zero for the Index Price calculation.
- Due to the reasons mentioned above (It is possible that the price from any exchange will be excluded from the calculation) as well as the difference in the speed of data updates, BingX does not ensure its price is the same as the median of the prices from the exchanges on the reference list.
- As trading pairs supported by each exchange are not entirely the same, the weighted calculation of the Index Price for each trading pair is slightly different. For specifics, please refers to the contract information.
The BingX Index Price is within the range of reference exchanges' prices at any time and truly reflects the price trend of cryptocurrencies to the best possible extent. In the meantime, it can avoid price manipulation of a certain exchange and ensures the fairness of the BingX Index Price.