“Bid” refers to the highest price that a buyer is willing to pay for an asset, security, commodity, or service. The bid is typically compared to the “ask” price, which is the lowest price at which a seller is willing to sell the same asset.
In other words, the “bid” is the buying price, and the “ask” is the selling price. The difference between the bid and ask prices is known as the “spread,” and it essentially reflects the supply and demand for that particular asset.
Bid prices are used in various markets, including stock and commodities markets, foreign exchange markets, and financial derivatives markets.