Mid price

The 'mid price' is the price you see against a share when you look in the newspapers. It's effectively the average between the buying and selling price in the market. The difference between a buying and a selling price of a share is the bid-offer spread.

More formally, the mid price is the half-way price between the two prices shown in the London Stock Exchange's Daily Official List under 'Quotation', or the average of both buying and selling prices offered by the market makers. This may be at the close of business or at a time during the day. It is also sometimes referred to as the middle market price. Most of the prices you will see quoted in the media are mid-prices.

See Also: Online share dealing service

Last Updated: July 2007 © Moneyextra.com

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