What is a bid price?

A bid price is a price for which somebody is willing to buy something, whether it be a security, asset, commodity, service, or contract. It is colloquially known as a “bid” in many markets and jurisdictions. Generally, a bid is lower than an offered price, or “ask” price, which is the price at which people are willing to sell.

What is a bid and ask price?

Bid and ask (also known as "bid and offer") is a two-way price quotation representing the highest price a buyer will pay for a security and the lowest price a seller will take for it. The difference between bid and ask prices, or the spread, is a key indicator of the liquidity of the asset.

What is the difference between a bid and an offered price?

Generally, a bid is lower than an offered price, or “ask” price, which is the price at which people are willing to sell. The difference between the two prices is called a bid-ask spread . Bids are made continuously by market makers for a security and may also be made in cases where a seller requests a price where they can sell.