Skip to main content

How Are Indices Calculated on BitMEX?

  • Updated

BitMEX indices are calculated using a weighted average of last prices from multiple exchanges. This multi-exchange approach ensures the index reflects the broader market and resists manipulation from any single exchange. Full methodology details are on the BitMEX Indices page.

This methodology serves two purposes:

  1. Manipulation resistance: No single exchange can disproportionately influence the index. A price spike or flash crash on one platform has limited impact on the overall index value.
  2. Market accuracy: The weighted average provides a more reliable representation of the true market price than any single exchange’s last traded price.

 

Why Do Indices Matter for BitMEX Traders?

Index prices form the foundation for mark price calculation on BitMEX. Mark price, which is derived from the index, determines position margin requirements, unrealised PNL, and liquidation triggers.

If a trader’s position is liquidated, the liquidation is triggered by the mark price, not the last traded price on BitMEX. This means the multi-exchange index protects traders from unfair liquidations caused by temporary price distortions on a single platform.

Related articles

This website is operated by HDR Global Trading Limited, a company incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707 and registered address at Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles (“HDR”). HDR wholly owns BitMEX, a Bitcoin-based trading platform.


Access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated or otherwise established in, or a citizen or a resident of: (i) the United States of America, Québec (Canada), the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; or (iii) any other jurisdiction where the services offered by BitMEX are restricted (collectively “Restricted Jurisdictions”). If it is determined that any BitMEX user has given false representations as to their location, incorporation, establishment, citizenship or residence, or HDR detects a user is from a Restricted Jurisdiction as described above, HDR reserves the right to immediately close their accounts and liquidate any open positions. HDR may, in its sole discretion, implement controls to restrict access to the BitMEX trading platform in any of the Restricted Jurisdictions.