In financial markets, the mid price is the price between the best price of the sellers of the stock or commodity offer price or ask price

Ask price

Ask price, also called offer price, offer, asking price, or simply ask, is the price a seller states she or he will accept for a good....

 and the best price of the buyers of the stock or commodity bid price

Bid price

A bid price is the highest price that a buyer is willing to pay for a good. It is usually referred to simply as the "bid."In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference between the two is called the bid/ask spread.An unsolicited bid or purchase...

. It can simply be defined as the average of the current bid and ask

Bid and ask

Price mechanism is an economic term that refers to the buyers and sellers who negotiate prices of goods or services depending on demand and supply. A price mechanism or market-based mechanism refers to a wide variety of ways to match up buyers and sellers through price rationing.An example of a...

prices being quoted.

In some cases, the mid price will be rounded up or down to the nearest "tick" (the nearest valid tradable price on the exchange system) for convenience purposes, and therefore not be the exact average.