Hit The Bid

AAA

DEFINITION of 'Hit The Bid'

A buzzword used to describe an event where a broker agrees to sell at a bid price quoted by another broker. The broker is ultimately agreeing to sell a given stock at the highest price that another broker is willing to buy at.

INVESTOPEDIA EXPLAINS 'Hit The Bid'

For example, suppose a dealer is asking $20 for a particular security and another dealer's bid price for that same security is $19. If the dealer selling the security for $20 agrees to sell at the other dealer's bid price of $19, they are said to "hit the bid".

RELATED TERMS
  1. Footprint Charts

    A group of charts that provide price and volume activity together ...
  2. Ask

    The price a seller is willing to accept for a security, also ...
  3. Best Ask

    The lowest quoted offer price among all those offered by competing ...
  4. Best Bid

    The highest quoted bid for a particular trading instrument among ...
  5. Bid

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

    The highest price that a buyer of a particular security is willing ...
Related Articles
  1. What is the difference between a broker ...
    Investing

    What is the difference between a broker ...

  2. The Basics Of The Bid-Ask Spread
    Investing Basics

    The Basics Of The Bid-Ask Spread

  3. What are the determinants of a stock's ...
    Investing

    What are the determinants of a stock's ...

  4. Pick the Right Brokerage Account for ...
    Options & Futures

    Pick the Right Brokerage Account for ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center