The market midpoint is calculated by adding the best bid and best ask prices and dividing by two. It provides a simple reference for the center of the current quoted spread, even when no trade has occurred at that exact price.
A midpoint is not a guaranteed execution price. A real order must interact with available liquidity, and the eventual fill can differ because of spread, market movement, order size, latency and the chosen order type.
Acronyms and aliases
mid-market price synonymquote midpoint synonym
Related terms
Frequently asked questions
How is the market midpoint calculated?
It is the average of the best bid and best ask, calculated as bid plus ask divided by two.
Can a trader always execute at the midpoint?
No. Execution depends on available orders and market conditions, so the midpoint is a reference rather than a guaranteed fill price.
