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What does Bid Mean?

When you make a ‘buy offer’ on a stock or other security in the financial markets, you are making a Bid.

A Bid offer in terms of financial markets is the price offered by an investor or trader for a security. A market maker will try to reconcile Bid offers (the highest prices that buyers are willing to pay) with Ask offers (the lowest price that a seller is willing to accept). Match the Bid and the Ask offers, and you’ve got a trade.

What is a “Spread”?
What is a Market-Maker Spread?

Keywords: trading, bid and ask prices, investment basics, market makers,