Bid Tick

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DEFINITION of 'Bid Tick'

An indication of whether the latest bid price is higher, lower or the same as the previous bid. Bid ticks track movements of bid prices in an open market for all placed bid offers, giving real-time information to traders and market participants as to the direction of bid prices over any given time period. In contrast, the ask tick would track ask requests over the same time period.

INVESTOPEDIA EXPLAINS 'Bid Tick'

The direction of the bid tick is important to institutional traders, who move large amounts of stock within a small period of time. Day traders also rely heavily on the direction of the bid tick when making their trade decisions. By monitoring bid ticks, traders can look for indications of how the market is expecting prices to move and the general spread between bid and ask quotes.

RELATED TERMS
  1. Tick Index

    The number of stocks trading on an uptick minus the number of ...
  2. Spread

    1. The difference between the bid and the ask price of a security ...
  3. Trader

    An individual who engages in the transfer of financial assets ...
  4. Ask

    The price a seller is willing to accept for a security, also ...
  5. Bid

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

    The minimum upward or downward movement in the price of a security. ...
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