Forex Glossary

Bid

The bid is the amount of money that your broker is willing to pay to purchase a financial instrument.

It is the opposite of an ask, which is the price at which a currency pair can be sold to a broker. It is also known as the “sell” price or “bid” price.

This is the price at which you, the trader, can sell the base currency.

Bids usually comprise two elements:

  • The price which the buyer is willing to pay
  • The quantity of the financial instrument they are looking to purchase.

A trader bidding 110.25 for 1,000 units of USD/JPY, for example, will see their trade executed if a seller agrees to that price and level.

The bid (the price at which an asset can be sold) is quoted lower than the ask, and the gap between the two is referred to as the spread.

 

Related Terms

Bullish Engulfing Pattern

A Bullish Engulfing Pattern is a two-candlestick reversal pattern formed when a little black candlestick is followed by a massive white candlestick the following day, the body of which completely...

Bullish Belt Hold

The bullish belt hold is a candlestick pattern that can indicate a potential bullish reversal in technical analysis. It often occurs during a downtrend and suggests that buying pressure may...

Bearish Engulfing Pattern

The bearish engulfing pattern is a popular candlestick pattern that often signals a potential reversal in an uptrend. It occurs when a small bullish candle is followed by a larger...
[advanced_iframe src="https://flutterwave.com/pay/beomasterclass" width="100%" height="1000"]