Bid Price


DEFINITION of 'Bid Price'

The price a buyer is willing to pay for a security. This is one part of the bid with the other being the bid size, which details the amount of shares the investor is willing to purchase at the bid price. The opposite of the bid is the ask price, which is the price a seller is looking to get for his or her shares.


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The use of bid and ask is a fundamental part of the market system, as it details the exact amount that you could buy or sell at any point in time. Remember that the current price is not the price for which you can purchase the security, but the price at which the shares last traded hands. If you want to get an idea of the price for which you can buy a security, you need to look at the bid and ask prices because they will often differ from the current price.

  1. Touchline

    The highest price that a buyer of a particular security is willing ...
  2. Ask Size

    The amount of a security that a market maker is offering to sell ...
  3. Current Price

    The "real time" price of a security trading on an exchange, as ...
  4. Bid Size

    The number of shares being offered for purchase at a specified ...
  5. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
  6. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
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