BitMEX Updates Mark Method for TKOUSDTZ24 to Fair Price Marking

BitMEX,
a
prominent
cryptocurrency
exchange,
has
announced
a
significant
change
to
the
mark
method
for
its
TKOUSDTZ24
contract.
Effective
from
June
6
at
07:00
UTC,
the
mark
method
for
TKOUSDTZ24
has
transitioned
to
Fair
Price
marking,
according
to
an
announcement
on
the

BitMEX
Blog.

Robust
Index
Construction

This
change
has
been
implemented
following
the
construction
of
a
robust
index
that
accurately
represents
the
spot
prices
of
TKO.
The
TKO
token
is
now
priced
on
the
.BTKOT
index,
which
amalgamates
TKO
prices
from
major
exchanges
including





Bybit,
Gate.io,
and
Kucoin.
This
strategic
move
aims
to
enhance
the
pricing
accuracy
and
reliability
for
TKOUSDTZ24
contracts.

Impact
on
Price
Protections

Alongside
this
transition,
BitMEX
has
also
removed
the
Limit
Down
and
Limit
Up
price
protections
for
TKOUSDTZ24.
These
measures
were
previously
in
place
to
prevent
extreme
price
swings
by
setting
upper
and
lower
price
limits
within
which
trades
could
be
executed.
The
removal
of
these
protections
could
imply
a
higher
risk
but
also
potentially
higher
rewards
for
traders
as
prices
will
now
reflect
the
raw
market
dynamics
without
artificial
constraints.

Market
Reactions
and
Expert
Opinions

Market
analysts
have
provided
mixed
reactions
to
this
update.
Some
experts
believe
that
the
move
will
benefit
traders
by
providing
more
transparent
and
fair
pricing,
while
others
caution
that
the
removal
of
price
protections
might
introduce
volatility
risks.
The
broader
crypto
market
has
seen
similar
moves,
with
exchanges
striving
for
more
accurate
and
representative
pricing
mechanisms
amid
increasing
scrutiny
and
demand
for
transparency.

In
related
news,
several
other
exchanges
have
been
exploring
similar
adjustments
to
their
pricing
mechanisms.
For
instance,
Binance
recently
updated
its
mark
price
calculation
methods
for
several
trading
pairs
to
reflect
more
accurate
market
conditions,
aligning
with
the
industry
trend
towards
precision
and
fairness
in
pricing.

Traders
and
stakeholders
are
encouraged
to
stay
informed
about
these
changes
and
understand
their
implications
on
trading
strategies.
For
any
further
inquiries,
users
can
contact
BitMEX
support
via
their
official
channels.

Image
source:
Shutterstock

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