Bid

Definition

Bid in plain English

Every tradable thing has two live prices at once: the 'bid' is the highest price buyers are currently willing to pay, and it's the lower of the two quotes. So if you're the one selling, the bid is what you can actually sell at right now. Think of trading in an old car: the dealer's offer (the bid) is a bit below the sticker price they'd charge someone else — buyers always want to pay a little less, and that lower number is the bid.

Learn these first

• Break-even stop
• True Range (TR)

Related Volume Profile Analysis terms

• Ask
• ATR (Average True Range)
• Auction Market Theory
• Below value
• Break-even stop
• Buying tail
• Day type
• Excess
• Excess high / Excess low
• Federal Open Market Committee (FOMC)