Bid Price Definition

The bid price is the highest price a buyer is ready to pay for an asset at a given moment, whether that asset is a stock, commodity, or cryptocurrency. Think of it as the top offer from the buyer side right now. 

Bid price vs. ask price

Every market also shows an ask price, which is the lowest price a seller will accept. The bid is normally lower than the ask. The gap between the two is the bid-ask spread, and a simple way to compute it is: spread = lowest ask − highest bid.

Where you see it: order books

On exchanges, bids and asks line up in the order book. Bids stack on one side, asks on the other. The best (highest) bid and best (lowest) ask sit at the top and define the market’s near-term trading zone. 

How orders get filled

If you want to sell immediately, you can hit an existing bid and your order fills at that buyer’s price. If you prefer to set your own price, you place an ask and wait for a bid to meet it. Orders only execute when a bid matches an ask. 

Bid-ask spread and trading costs

The spread matters because it affects execution quality and the cost to trade. A tighter spread usually points to better liquidity and lower transaction costs, while a wider spread can mean thinner markets and pricier fills. 

In crypto markets

Crypto prices move quickly, so the bid price gives a live read on demand for a coin at that instant. Higher bids suggest stronger buyer interest, while weaker bids can hint at cooling demand. Traders watch these moves to time entries and exits. 

Bidding wars

When several buyers compete, each new bid can leapfrog the last. This “bidding war” pushes the highest bid up and can pull market prices higher in the process. 

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