In the context of finance and investing, “best bid” refers to the highest price that a buyer is willing to pay for a specific security, commodity, or asset at a particular time. The opposite of the best bid is the best ask (or best offer), which is the lowest price a seller is willing to accept for a security.
In a market order book, you’ll see both the best bid and best ask prices listed. These are also known as the highest bid and lowest ask prices. The difference between these two prices is known as the bid-ask spread, which is a key indicator of the liquidity of the asset. The narrower the spread, the more liquid the market.
It’s important to note that the “best bid” and “best ask” can change rapidly in a liquid and active market as buy and sell orders are executed and new orders are placed.