# Last Price, Index Price & Oracle Price

**Last Price**&#x20;

The Last Price represents the most recent transaction price of a contract, updated in real time and displayed in the order book. This metric is essential for traders engaged in day trading and scalping strategies, as it reflects the latest market activity. By providing immediate insights into current trading conditions, the Last Price enables traders to make timely decisions based on the most recent data.&#x20;

**Index Price**

The Index Price is derived from the weighted average of prices collected from multiple major crypto exchanges, including Binance, OKX, Bybit, and Coinbase. These weights are dynamically adjusted every four hours to align with fluctuations on these platforms. Utilizing the Index Price helps users sidestep exchange-specific anomalies, making it advantageous for swing trading positions. Notably, this aggregated price is primarily used to calculate funding fees, ensuring fair funding rates across the market.

**Oracle Price**

&#x20;The Oracle Price is sourced from the independent provider Stork and is used to calculate margin requirements and liquidation prices. The estimated liquidation price is influenced by the user’s leverage and margin. If the Oracle Price reaches this liquidation threshold, the position will undergo forced liquidation. Oracle Prices are crucial for maintaining the integrity of the trading platform by providing reliable price data that is resistant to manipulation.

For a comprehensive understanding of Stork's methodology for determining the Oracle Price, please refer to Stork's [documentation](https://docs.stork.network/).
