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Trading Glossary

Bid

Basics

What it means

The highest price someone is currently offering to pay for an asset. It is the price you get if you sell right now.

Example

If AAPL shows a bid of $150.00, a seller using a market order to sell 1 share receives $150.00 per share.

Mistake beginners make

Beginners stare at the last traded price and assume that is what they will get, but the bid -- the live offer to buy -- is the real cash-out price the instant you sell.

Related terms

  • Ask — The lowest price a seller is currently willing to accept. It is the price you pay if you b…
  • Spread — The gap between the bid (best buy price) and the ask (best sell price). It is a hidden cos…

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