The bid price is the maximum price a buyer is willing to pay for a currency pair or financial instrument. When you sell, you sell at the bid price.
How It Works
In a quote like GBP/USD 1.2650/1.2653:
- 1.2650 = Bid (what buyers offer)
- 1.2653 = Ask (what sellers want)
Example
You want to sell EUR/USD:
- Current quote: 1.0850/1.0852
- You sell at 1.0850 (bid price)
- The buyer pays 1.0850 for each EUR
Key Points
- The bid price is always lower than the ask price
- Higher bid prices indicate stronger demand
- The bid-ask spread represents transaction cost
- Bid prices update in real-time during market hours