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DERIVATIVES · MARK VS INDEX PRICE

Mark Price vs Index Price: How to Read the Data With Price Context

Index price tracks spot across venues. Mark price adds a premium component. The difference between them is the market's current premium on the perpetual.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

The index price is a weighted average of spot prices across selected venues; the mark price adds a premium or basis component on top, smoothing the contract's deviation from spot. Binance's premiumIndex endpoint reports both markPrice and indexPrice. In price context: mark above index means the perpetual trades at a premium (longs paying), usually with positive funding; mark below index means a discount. A widening premium during a rally signals perp-led demand; a premium collapsing while spot holds signals leverage leaving.

Index, mark, premium

PriceBuilt fromUse
IndexSpot prices across venuesReference for fair value
MarkIndex + premium componentP&L, liquidation
PremiumMark − index (or basis)Perp demand vs spot
Illustrative premium (mark − index) through a rally ($)Illustrative premium (mark − index) through a rally ($): Before 8 $; Mid-rally 95 $; After pullback 15 $.ILLUSTRATIVE PREMIUM (MARK − INDEX) THROUGH A RALLY ($)Before$8Mid-rally$95After pullback$15
Premium widened with perp demand, then collapsed. Original ChartsPod editorial graphic.

Price context

Illustrative: during a rally, index rises 4% while the premium widens from $8 to $95; funding rises too. After a pullback the premium collapses to $15 while index barely moves: perp longs exited while spot held, a sign the rally's leverage component unwound.

Premium readingPremium reading: Mark and index same timestamp; Premium in $ and %; Funding alongside; Spot vs perp leadership; Premium trend over hours.PREMIUM READINGMark and index same timestampPremium in $ and %Funding alongsideSpot vs perp leadershipPremium trend over hours
Premium is perp demand made visible. Original ChartsPod editorial graphic.

Using it

Related: Mark Price vs Last Traded Price in Crypto: How to Read the Data With Price Context, Annualized Futures Premium: Calculate Carry After Fees and Funding.

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A widening premium during a rally signals perp-led demand; a premium collapsing while spot holds signals leverage leaving.

Test Mark Price vs Index Price on a perpetual chart; no account is needed to chart.

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Questions readers ask

What is the index price?

A weighted average of spot prices across venues.

How does mark differ?

It adds a premium component.

What does a widening premium mean?

Perp-led demand, usually with rising funding.

Sources and methodology

Definitions follow Binance's USD-M market data documentation, Hyperliquid's funding documentation, TradingView's open-interest guide and Bybit's liquidation rules, read 17 October 2026. Examples are illustrative, not recorded market data.

  1. Binance: USD-M market data (long/short ratios, OI statistics, klines) — ratio definitions, 30-day retention, kline open/close time.
  2. TradingView: Understanding crypto open interest — aggregated vs single-venue OI and units.
  3. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.