Bid Price

The bid price is the price or rate at which buyers are willing to purchase shares. With the help of the bid price, the trader can determine what an immediate sale of his securities could achieve. It thus reflects the demand on the market. The bid price is the counterpart of the ask price.

The ask price refers to the selling or offer price of foreign exchange and securities. It also indicates the price at which there are offers but no demand. It represents the rate or price at which a seller wishes to sell securities. The counterpart to the ask price is the bid price.