Trader's Glossary

Bid Price

Market prices are quoted in pairs known as bid/ask. The bid is the price at which an underlying instrument can be sold at. So when trading on a currency pair, for instance EUR/USD, the bid price represents how much of the quote currency (in this case USD) a trader is able to get when selling a unit of the base currency (in this case the Euro). When listed as 1.32166 / 1.32184, the bid price for this currency pair is the first figure of 1.32166, meaning that selling 1 Euro will earn the seller $1.32166.