How do Crypto Exchanges Calculate Spot reference price?

Discussion in 'Cryptocurrencies' started by Fain, Nov 13, 2019.

  1. Fain

    Fain

    Hello,

    I have recently started working for a Crypto Exchange which is introducing Margin trading on it's platform soon. I'm tasked with a few questions which i'm in over my head admittedly.

    What do crypto exchanges use as their price index for different Crypto pairs when determining margin requirements?

    What Formulas do they use to calculate them? (ie weighted mean vs geometric mean)
    Which one is best and why?