Trading

Bid Price: Definition

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Simple Definition

The highest price someone is willing to pay for a stock right now.

Why It Matters

The bid is what buyers will actually pay you right now. If Apple's bid is $179.50 and ask is $179.52, you can sell immediately at $179.50. Many people look at the 'last price' but the bid tells you what you'll actually get. During volatile markets, bids can drop sharply while the last price hasn't caught up.

Key Points

  • When you sell with a market order, you get the bid price (or close to it)
  • The bid updates constantly during market hours as buyers adjust their offers
  • A wide gap between bid and ask means fewer buyers - be cautious

Related Terms

Common Questions

The highest price someone is willing to pay for a stock right now. The bid is what buyers will actually pay you right now. If Apple's bid is $179.

The bid is what buyers will actually pay you right now. If Apple's bid is $179.50 and ask is $179.52, you can sell immediately at $179.50. Many people look at the 'last price' but the bid tells you what you'll actually get. During volatile markets, bids can drop sharply while the last price hasn't caught up.

When you sell with a market order, you get the bid price (or close to it)

The bid updates constantly during market hours as buyers adjust their offers

A wide gap between bid and ask means fewer buyers - be cautious