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Mid Price

Price midpoint between the best bid and best ask, commonly used for valuation and analytical reference.

The mid price is the midpoint between the best bid and best ask prices in a market. It is commonly used as a reference price for valuation and analysis.

In oil trading, the mid price provides a neutral estimate of fair value, especially when spreads are tight. It is often used for internal risk reporting and mark-to-market.

However, the mid price does not reflect executable levels for large trades, particularly in thin markets. Traders must consider depth and liquidity.

Mid price is a useful analytical tool but should not be mistaken for a guaranteed execution price.