---
title: "Manage Trades Based On Setting (Mid Price vs Bid/Ask Price)"
description: "This article will show you the difference between the mid price and bid/ask price setting for trade management"
url: https://help.optionsautotrader.com/en/articles/99-manage-trades-based-on-setting-mid-price-vs-bidask-price
collection: "Options Auto Trader 101"
updated: 2026-07-10
language: en
---

# Manage Trades Based On Setting (Mid Price vs Bid/Ask Price)

This article will show you the difference between the mid price and bid/ask price setting for trade management

This guide provides a step-by-step explanation of how to manage trades using either the **Mid Price** or **Guaranteed Price** settings in the Options Auto Trader platform.

## **Step 1: Understanding the Settings**

-   Navigate to the **Create Auto Trader** section.
    
-   Choose your desired strategy, trade structure, and entry rules.
    
-   Focus on the **Exit Conditions** or **Management Rules** to define how trades will be managed.
    

## **Step 2: Default Management Setting - Mid Price**

-   By default, the **Manage Trade Based On** setting is set to **Mid Price**.
    
-   Mid Price is calculated as the average of the **Bid Price** (price buyers are willing to pay) and **Ask Price** (price sellers are asking).
    
-   Take Profit and Stop Loss percentages are based on the Mid Price:
    
    -   This method is fastest and most convenient for most traders.
        
-   **Recommendation**: Keep this default setting unless you are an advanced trader.
    

## **Step 3: Accessing Advanced Settings**

-   Click on the **Advanced** option under **Management Settings**.
    
-   Scroll to the **Manage Trade Based On** section to customize settings.
    

## **Step 4: Switching to Guaranteed Price**

-   Use the **Bid/Ask Price** setting if:
    
    -   You’re trading assets with low volume.
        
    -   The Bid-Ask spread is large, causing the Mid Price to differ significantly from actual trading levels.
        
-   The Guaranteed Price calculates based on:
    
    -   **Bid Price** for selling a debit trade.
        
    -   **Ask Price** for buying back a credit trade.
        
-   This ensures trades are executed at precise levels for Take Profit and Stop Loss.
    

## **Step 5: Key Considerations for Each Setting**

-   **Mid Price**:
    
    -   Easier to use and sufficient for most traders.
        
    -   Ideal for high-volume assets with smaller Bid-Ask spreads.
        
-   **Bid/Ask Price**:
    
    -   Ensures accurate execution during low-volume trading.
        
    -   Recommended for advanced users handling volatile or low-liquidity assets.
        

## **Step 6: Final Tips**

-   For most users, keeping the **default Mid Price setting** is recommended.
    
-   Use **Bid/Ask Price** only if you have experience with advanced trading and specific requirements for execution accuracy.  
    

## **Cautionary Notes**

-   Changing settings without understanding their implications can lead to unintended trade execution issues.
    
-   Be cautious when trading low-volume assets, as large Bid-Ask spreads can affect profitability.
    

## **Tips for Efficiency**

-   Keep the **Mid Price** setting for most trades to save time and reduce complexity.
    
-   Only switch to **Bid/Ask Price** when trading in low-liquidity markets to avoid execution delays or inaccuracies.
    
-   Regularly review the Bid-Ask spread of your chosen assets to determine the best management strategy.
    

**TERMS OF SERVICE:** Please be aware that continued use of the Options Auto Trader is subject to our [Terms Of Service](https://www.optionsautotrader.com/terms-of-service). If you have any questions or wish to review these terms, feel free to visit the website.