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
1
Watch bid when closing long positions
2
Bid can drop sharply in panic selling
3
Wider spreads mean lower bids relative to ask
Related Terms
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