Definition
The bid price represents the maximum price that buyers in the market are currently willing to pay for a security. It's the price at which you can immediately sell if placing a market sell order. The bid is always lower than the ask price, and the difference between them is the bid-ask spread. High bid prices relative to recent trading indicate strong buying interest. Market makers and other liquidity providers set bid prices to profit from the spread.
Example
If Apple shows a quote of $175.50 bid / $175.55 ask, $175.50 is the bid price. If you want to sell Apple shares immediately, you would receive approximately $175.50 per share.
FAQ
What is Bid Price?
The highest price a buyer is willing to pay for a security.
Why is Bid Price important?
Bid Price helps investors evaluate trading mechanics and make more informed decisions.