Bid Price

The Bid Price is the price at which a buyer is willing to purchase an asset, such as a currency pair, stock, or commodity. In trading, when you want to sell something, you will sell it at the bid price. It is the opposite of the ask price, which is the price a seller wants to receive. The difference between the bid price and the ask price is called the spread.

The bid price is important because it shows the highest price a buyer is ready to pay at that moment. For example, if the bid price for EUR/USD is 1.1048, that means buyers are currently willing to pay 1.1048 US dollars for 1 euro. Knowing the bid price helps traders understand the demand in the market and decide when to sell an asset. In fast-moving markets, the bid price can change quickly, so traders need to watch it closely when placing sell orders.

Browse through other terms in our Trader’s Dictionary.