1. Index Price
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 contract 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 there's an abnormal price on the reference trading platform or a lack of data updates for over 60 seconds, it could signal potential manipulation risks. In such cases, the price from that trading platform will be excluded from the Index Price calculation, reducing its price calculation weight to zero.
- When the price on multiple trading platforms are abnormal, BingX will use the price from only one trading platform to calculate the Index Price.
- 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.