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Natural Price
Natural price is commonly used to describe the immediately available side of the market for an options order. For a straightforward purchase, this is generally the ask. For a straightforward sale, this is generally the bid. For multi leg orders, the natural price reflects the relevant combination of quoted prices across the legs.
Why it matters to you
Executing at the natural price prioritizes immediacy but may sacrifice price improvement. Understanding the natural price helps traders judge how aggressively they are attempting to enter or exit.