Bid definition

The bid is the highest price a buyer will pay for an instrument. In a trading quote it is usually the price at which you can sell right away.

The bid sits alongside the ask in a two-way quote and represents demand at a given price level. A higher bid can signal stronger buying interest, while a lower bid can point to weaker demand or thinner liquidity.

The bid is always lower than the ask, the offer side where you buy. The gap between the two is the spread, the immediate cost of opening a position. You sell at the bid; you buy at the ask.

Bid Example

EUR/USD is quoted at bid 1.0850 and ask 1.0852. To sell EUR/USD immediately, you sell at the bid of 1.0850.

The gap between the bid and the ask is the spread:

1.0852 - 1.0850 = 0.0002, or 2 pips