In
financial markets
A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial ma ...
, the mid-price
is the price between the best price of the sellers of the stock or commodity
offer price or ask price and the best price of the buyers of the stock or commodity
bid price
A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference betwe ...
. It can simply be defined as the average of the current
bid and ask prices being quoted.
In some cases, the mid price will be rounded up or down to the nearest "tick" (the nearest valid tradable price on the exchange system) for convenience purposes, and therefore not be the exact average.
See also
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Bid price
A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference betwe ...
*
Ask price
Ask price, also called offer price, offer, asking price, or simply ask, is the price a seller states they will accept.
The seller may qualify the stated asking price as firm or negotiable. Firm means the seller is implying that the price is fix ...
*
Bid–offer spread
References
Financial markets
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