Best Bid
 |
Definition of 'Best Bid'The highest quoted bid for a particular trading instrument among all those offered by competing market makers. The best bid is effectively the highest price that an investor is willing to pay for an asset. A bid is an offer made by a trader, investor or other industry professional to purchase a security. The bid specifies both the price that the buyer is willing to pay and the quantity of the security that is desired. Bid also refers to the price at which a market maker is willing to purchase a security. Best bid is the opposite of best ask. |
|
Investopedia explains 'Best Bid'The National Best Bid and Offer (NBBO), which refers to the Securities and Exchange Commission (SEC) requirement, are the bid and ask prices that traders and investors typically see. They are required by the SEC to be the best bid and ask prices available to customers. Active traders, short-term traders and day traders often study Level 2 quotes that include all the bids and asks for a particular trading instrument. The NBBO is continually updated throughout the trading session so that customers have access to these prices. |
Related Definitions
Articles Of Interest
-
Setting Vs. Getting: What Is A Price-Taker?
Learn how the economic term "price taker" may separate investors from traders. -
Getting To Know The Stock Exchanges
Here are the answers to all the questions you have about stock exchanges but are too afraid to ask! -
The Basics Of The Bid-Ask Spread
Understanding the real forces that move stock prices is part of being a good trader. -
Stock Basics Tutorial
If you're new to the stock market and want the basics, this is the tutorial for you! -
Investing 101: A Tutorial For Beginner Investors
Do want to invest, but don't know how to begin? We'll show you the building blocks you need to get started. -
How To Start Trading
Successful trading involves more than reading a few articles or books: you should plan on devoting a substantial amount of time and effort before ever placing a trade in a live market. -
Should You Add A Securities License To Your Qualifications?
Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it. -
How To Report A Tax Cheat
If you report a tax evader to the IRS, you could be eligible for a reward. -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ... -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
