Definition
The halfway point between the best price a buyer will pay for a contract (the bid) and the best price a seller will take (the ask). It is the fairest single read of what the market thinks right now, and it is what an open position is valued at.
Related terms
- Bid and ask — The best price to sell at (bid) and the best price to buy at (ask). The gap is the cost of trading.
- Unrealized P&L — Profit or loss on a position still open, at the current price. Not in the record until it closes.