Bid-Ask Midpoint: Why It’s Not a Guaranteed Fill
Summary
Hollow Point Trading explains why a quote midpoint is a calculation, not a promised execution price. Using a hypothetical $50 bid and $50.20 ask, the announcement shows a $50.10 midpoint and compares its $5,010 reference value for 100 shares with the cost of buying at the ask. Understanding this difference helps traders assess execution and trading costs.
https://youtu.be/qoiDIL8jc28
The midpoint of a quote is not a promised execution price #BidAskSp...
A quote midpoint is a calculation, not a promised fill. In a hypothetical stock quote, the bid is fifty dollars and the ask is fifty dollars twenty cents. Their midpoint is fifty dollars ten cents. For one hundred shares, that midpoint reference is five thousand ten dollars. Buying those shares at the stated ask instead would cost five thousand ...
