# What does "Index Price" mean?

## (B) **Index Price**

<div align="left"><figure><img src="/files/As2YehUbLduiXafFpgXW" alt="" width="92"><figcaption></figcaption></figure></div>

The index price is a key reference price used to determine the value of a perpetual contract.

It typically reflects the average price of an asset across multiple spot exchanges to ensure a fair and accurate benchmark.

> ***Note:** Tradoor is not an orderbook-type exchange, and it is an on-chain exchange with its price frequency being 1 second, which means that it will use the median price per second of the Binance price source for settlement.*
>
> Hence,  for a limit type order the trigger price might not always be the index price. (But more on [limit type orders](/tradoor-user-guide-v2/how-to-trade-on-tradoor/trading-perps-101/how-do-i-make-my-first-trade-in-perps/1-select-between-market-order-and-limit-order.md) later).


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