Bid Price

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Dictionary Says

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.
Investopedia Says

Investopedia explains 'Bid Price'

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.

Related Definitions

  • Bid

    1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to ...
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  • Bid Size

    The number of shares being offered for purchase at a specified bid price, that a buyer is willing to purchase at that bid price. For example, if an investor wants to buy 200 shares of ...
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  • Touchline

    The highest bid and lowest ask at market for a particular security during a given time in the trading day.
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    • Ask

      The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security ...
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    • Ask Size

      The amount of a security that a market maker is offering to sell at the ask price. The higher the ask size, the more supply there is that people want to sell. When a buyer seeks to ...
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    • Bid-Ask Spread

      The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price ...
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    • Current Price

      The "real time" price of a security trading on an exchange, as well as the most recent price of a security listed in an investment portfolio. In the case of a bond, a bond's current ...
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