The market value, position profit/loss, and real-time risk control of options are uniformly calculated using the Mark Price. The daily profit/loss of options is calculated using the Mark Price and the Previous Mark Price (Pre-mark).

General Rules for determining the Mark Price:

  • When the last price lies between the best bid and best ask, the Mark Price is equal to the last price.

  • When the last price is not between the best bid and best ask or does not exist, the Mark Price is set to the mid-price (for single-leg option, mid-price generally equals to the average of the best bid and the best ask).

  • If the ask price does not exist and the last price is lower than the best bid, the Mark Price is set to the best bid.

  • If the ask price does not exist and the last price is higher than the best bid, the Mark Price is set to the last price.

  • If the bid price does not exist and the last price is lower than the best ask, the Mark Price is set to the last price.

  • If the bid price does not exist and the last price is higher than the best ask, the Mark Price is set to the best ask.

Was this helpful?