Understanding Index Calculation Methodology
To ensure our spot index prices accurately reflect the fair market value of each cryptocurrency, OKX employs a robust calculation system that:
- Selects 3+ major exchanges as index components per contract currency
- Implements advanced anomaly detection logic
- Maintains stable index fluctuations even when individual exchange prices deviate significantly
👉 Discover how OKX maintains market-leading price accuracy
Key Components of Index Calculation
Our index pricing system follows this structured approach:
Real-time Data Collection:
- Latest transaction prices
- Trading volumes from all component exchanges
Data Validation:
- Exchanges undergoing maintenance become invalid
- Stale data beyond configured thresholds gets excluded
Currency Conversion:
- BTC-quoted pairs convert to USDT prices using OKX BTC/USDT index
- Price Determination Logic:
| Valid Exchanges | Calculation Method |
|---|---|
| ≥3 exchanges | Equal-weight average with 3% deviation cap |
| 2 exchanges | Simple equal-weight average |
| 1 exchange | Direct price adoption |
Cryptocurrency Index Composition
OKX carefully selects component exchanges for each cryptocurrency:
BTC Index Composition
- Component Exchanges: Okex, Binance, Huobi, Poloniex
- Equal Weight: 25% each
ETH Index Composition
- Component Exchanges: Okex, Huobi, Binance, Bitfinex, Bittrex
- Equal Weight: 20% each
👉 Explore OKX's comprehensive index coverage
(Additional cryptocurrency compositions formatted similarly...)
Frequently Asked Questions
Why does OKX use multiple exchanges for index calculation?
Using multiple exchanges prevents market manipulation and ensures price stability. Our weighted system automatically filters outliers.
How often are index prices updated?
Index prices update in real-time, with our system processing new transaction data continuously from all component exchanges.
What happens when an exchange goes offline?
Our system automatically excludes offline exchanges and recalculates weights among remaining valid components.
How does OKX handle extreme price deviations?
When prices deviate >3% from the median, our system automatically adjusts them to stay within the acceptable range (median × 0.97 to 1.03).
Why convert BTC-quoted pairs to USDT?
Standardizing to USDT pricing ensures consistent valuation across all trading pairs and simplifies comparison.
Can the index composition change?
Yes, we periodically review and update component exchanges to maintain index quality and market relevance.