bro wtf is shock price? its super confusing like is that my liqudation price?
its some kind of “risk” price? but is it always a certain % from the current pricE? I dont get it?
I understand LTV or HR when we talk about spot collateral, but what does perps have to do with this?
i had the same question a while ago
see: Shock Price
but yea basically it’s the price at which the risk engine sees that position to calculate available margin
Yes sir, @yonathan is exactly right.
To answer the “what does perps have to do with it?” question - in the case where the price of the asset is at the shock price shown on your screen, you will have an unrealized pnl gain or loss. That unrealized pnl counts towards your available margin, either adding to it or taking away from it. Hence, it it is an important part of the calculation to determine your portfolio health and liquidation risk.
wait I thought shock price moves together with the real time price constantly?
It does. It is a % discount applied to the current mark price, i.e. the “real time price”.