Mid-market spot rate

[slpass]

The example 3 on book I of CFAI used “mid-market spot rate” to solve question 2, saying it is because this is an FX swap. What other situations do we need to use mid-market spot rate? Thanks!

 

[trade4u100]

My understanding is that we only use the midmarket rate if we are dealing with a swap position! Other posts are welcome!

 

[h21]

slpass wrote:
The example 3 on book I of CFAI used “mid-market spot rate” to solve question 2, saying it is because this is an FX swap. What other situations do we need to use mid-market spot rate? Thanks!

Encountered the same question here, any one has clear idea when to use mid market rate? and why and what does that even mean

 

[M_Mitchell08]

Mid market spot rate would be the median price between the bid-ask spread.

 

[h21]

M_Mitchell08 wrote:
Mid market spot rate would be the median price between the bid-ask spread.

ok, and when do we and why do we even use it?