“Mid market rate”
The mid-market rate is the mid-point between the buy and the sell prices of the two currencies to an exchange rate – what the buyer is prepared to pay and what the seller is prepared to sell for. It is also known as the interbank rate.
A genuinely applied mid-market rate is universally regarded as the most transparent and accurate foreign currency exchange rate reflecting real time movements in the currency markets.
Banks and brokers habitually apply a “spread” to the mid-market rate, which is effectively a hidden charge that amends the quoted rate.
An example of a mid-market rate is that, if the buy rate is 2 and the sell rate is 1.5, the mid-market rate would be the average of both: 1.75.