Bid Price

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The bid price is the best price at which we can buy a financial asset. It is the price that is seen when you analyse charts on trading platforms.
  • The bid price is the best price at which we can buy a financial asset.
  • It is the price that is seen when you analyse charts on trading platforms.

When operating in the financial markets, you are provided with the bid price as well as the ask price. The bid price is always less than the ask price, and the difference between the ask price and the bid price is what we call the spread, which is also the cost of executing a transaction in the market.

As an example, if a window on your trading platform quotes the OIL market at 42.10 / 42.15, then it means that the bid price is 42.10 and the ask price is 42.15.

The thing to remember when going long is that your trade will open at the ask price and close at the bid price.

On the other hand, if you go short on the market, your trade will open at the bid price and close at the ask price.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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