The bid is the highest price a buyer is currently willing to pay for a security or asset in the market. Sellers who want immediate execution must sell at the bid price, which is always lower than the ask price. The difference between the bid and ask is known as the spread, and it represents a key component of transaction costs in trading. A strong bid often signals healthy buying interest at that price level.
Example
“The bid on EUR/USD was 1.0845, meaning a seller could immediately execute a trade at that price.”