Statrys Forex 101: What is a Mid-Market Rate?
What is a mid-rate or mid-market rate? How is it calculated? Where can you find it? Why is it important to understand what it is? This video will answer all these questions in less than 2 minutes.
In this episode of Statrys Forex 101, Jonathan Cusimano, Head of FX at Statrys, explains what the mid-market rate really is and why it matters for businesses dealing in multiple currencies. Often described as the “real” exchange rate, the mid-market rate is widely referenced but rarely understood.
Jonathan breaks down where this rate comes from, why it can vary slightly across platforms, and why banks and FX providers never let you transact at the mid-market rate. Understanding this gap helps businesses better assess FX fees and make more informed currency conversion decisions.
Key Takeaways
- What the mid-market rate is and how it is calculated
- Why FX rates differ slightly across banks and platforms
- The role of major banks and liquidity providers in FX pricing
- Why businesses never exchange at the mid-market rate
- Where to find reliable mid-market rate references
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