The bid price is what buyers are offering right now. If you sell with a market order, you usually receive something close to the current bid. Together with the ask price, the bid defines the live market for that security.
Key takeaways
- Sellers who need speed typically hit the bid.
- A higher bid with size shows stronger immediate demand.
- The bid-ask spread is a real cost of trading, especially in thin markets.
- Your own limit sell can become the new best ask, not the bid.
Why it matters in Ethiopia
In early trading sessions on a young market, bids can sit far below asks. Checking both sides before you trade reduces the chance of an ugly fill.