# Market price calculation algorithm?

So I am doing digital assets trading. Which is very interesting way to make some money (and at the very least cover the inflation rate). The trading itself with all different options is quite clear. However I struggle to understand how exactly market price is calculated.

To elaborate - below is the screenshot of a buy/sell orders on one of the markets. You can clearly see that the lowest asking price is 226.950 (EUR), where as the highest bid is 226.430 (EUR). However the calculated market price is always somewhere in between of that (in this case it is 226.440 EUR).

My question is how is the market price determined based on `highest bid` and `lowest ask`? Is there any universal algorithm to that? Or is it up to market (software in this case) to decide how to calculate this?

• Are you sure it is displaying Market price rather than last traded price? In most stock exchanges the market price will be 226.950 or 226.430 depending on the whether the market trade is for bid or ask. Sep 14, 2017 at 7:59
• @Dheer I didn't say it is stock market. It is digital assets market so it may be different (IDK that). But this is what they show as "market price" on this and a few other similar platforms. Which actually made me curious about how they get the number. Sep 14, 2017 at 8:08
• Is there a screen/function that lists the most recent trade(s) to see whether or not this is the "last-trade price" being shown? Sep 14, 2017 at 11:19
• @TripeHound can't see anything like that. Sep 14, 2017 at 11:20
• Sep 14, 2017 at 18:09