Bid and Ask

Bid and ask are two fundamental terms for reading a market. The bid is the highest price at which a buyer is willing to buy an asset; the ask (or offer) is the lowest price at which a seller is willing to sell it. Both are visible in the order book.

The difference between ask and bid is called the spread: a narrow spread generally indicates a more liquid market. The bid and ask reflect, in real time, the meeting of supply and demand and change continuously according to the orders on the market.

Disclaimer: This entry is for information purposes only and does not constitute investment advice, a recommendation or a solicitation to invest.