Bid Price
A bid is a buyer saying, “I am ready to pay this much for the share.” It is an offer, not a completed trade.
Start the lessonIntroduction
A buyer's offer to pay
A bid price is the price a buyer is currently willing to pay for a share or other security. Think of it as an active offer in the order book. It becomes a trade only when a seller agrees to that price and quantity.
The short answer
Bid = buyer's offer. The best bid is generally the highest currently available buy price.
Where bid prices appear
Buy orders are listed in the order book
There can be many bids at different prices, each for a particular quantity.
In this example, ₹100 is the best bid because it is the highest current buy offer shown. The table is illustrative, not live market data.
Try the example
Compare bid, ask, and last traded price
Enter illustrative values to see how the difference between the best bid and ask is calculated.
Illustrative bid-ask difference
₹2
Best ask ₹102 − best bid ₹100
At the best bid, buyers are offering for 50 shares.
The bid is an offer, not a completed sale. Prices and quantities can change quickly, and an order may not be matched. The difference shown is for learning only, not a live quote.
What to keep in mind
A bid is not a guaranteed sale price
- A bid is a buyer's current offer; it is not proof that a trade has happened.
- The best bid can change when buyers enter, change, or cancel orders.
- The last traded price is from a completed trade and can differ from the current best bid.
- A market seller may match with available buy orders, but the actual execution depends on price, quantity, and market conditions.
Key points
What to remember
- The bid price is what a buyer is offering to pay.
- The best bid is generally the highest available buy price.
- A bid is an open order, not a completed trade.
- The bid includes a price and an available quantity.
- The last traded price can differ from the current bid.
- Bid prices and quantities can change quickly.
This lesson is for education only, not personalized financial, tax, or investment advice. Investments in securities are subject to market risks.
Test yourself
5-question quiz
Choose one answer for each question, then check your score.