Definition of Bid in finance

Bid is simply the price in a market for which an asset can be sold (i.e. the price at which it is being bought). The bid price is usually also quoted with the amount of the asset which the buyer is prepared to buy.

Bid is the opposite to ask and both terms are used in almost every single financial market across all asset classes and it is given in the format '(price) for (quantity)'.

An example of a bid is:

• "$5 for 50"

This means the buyer is willing to buy 50 units of an asset for $5 per unit for a total cost of $250.