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Mid Price

Mid price is the average of the best bid and best ask. It is often a better proxy for consensus than last traded price in thin markets.

Definition

Mid price is the average of the best bid and best ask:

mid = (best_bid + best_ask) / 2

Why it matters

In thin markets, the last traded price can be stale or misleading. Mid price updates whenever the book changes and is often a cleaner proxy for market consensus.

Related

Mid price is commonly used to compute implied probabilities and to create benchmarks such as a consensus snapshot at a given time.