Bid

In markets, “the bid” refers to the highest price a buyer is willing to pay for an asset, such as a stock or commodity.

It’s the opposite of the “ask,” which is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the “bid-ask spread.” A narrow spread often indicates a more liquid market, while a wider spread can signify less liquidity.

The bid price is crucial for traders and investors as it helps determine the best possible price for executing a trade.