Mid Price
Mid price is the midpoint between bid and ask, used as a neutral reference when both are available.
Definition
Mid price is the midpoint between bid and ask, computed as (bid plus ask) divided by 2.
Why it matters
Mid is a neutral reference for translating price into implied probability. It is also a baseline for spread metrics such as effective spread.
Common pitfalls
Assuming you can trade at mid: Mid is a reference, not an executable price.
Ignoring thin depth: Mid can be unstable in low liquidity markets.