The price that falls between the best price quoted by the sellers of a security (or another type of assets), i.e., the offer price/ ask price, and the best price offered by the buyers of the security, i.e., the bid price. It is the average of the current bid and ask prices being quoted at a given point or window of time at a specific market.

It is the average of the best bid and ask prices.

The mid price is used as a peg in multiple types of orders (midpoint peg orders). The mid price of the market quote is also used in the calculation of the effective spread– which is equal to twice the absolute value of the difference between the actual trade price and the midprice of the market quote (that is, between the quoted bid price and the quoted ask price), divided by the mid price between these two prices.

It is also known as a mid point.