Essential

Bid

The price at which a buyer is willing to purchase a security.

Definition

The bid price is the highest price a buyer is willing to pay for a security. When you want to sell, you receive the bid price. The bid is always lower than the ask, with the difference being the spread.

How It Works

Quote: 1.1000 (bid) / 1.1002 (ask)
Sell orders execute at the bid
Bid = left-hand side of quote
Market makers buy at bid, sell at ask

Trading Tips

Watch bid when closing long positions

Bid can drop sharply in panic selling

Wider spreads mean lower bids relative to ask

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