Should the Mid Price always be equal to the average of Bid and Ask Prices or can brokers and dealers quote a Mid Price that is within Bid and Ask but isn't the average?
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A reference price calculated by taking the average of the current quoted bid and ask prices. As the average between the high and low quoted prices, the mid-price expresses a general market value for an asset. However, since exchange prices are rounded to the nearest valid tradable price, the mid-price value may not be an exact average of bid and ask values.
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Mark Monforti
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