Bid vs Ask
Look-alike pair
Full entries: .
Bid and ask are the two sides of a quoted price: the bid is what a buyer is currently willing to pay, and the ask is what a seller is currently willing to accept. The single difference that matters is direction of the transaction: you sell at the bid and buy at the ask. Everything else—spread, midpoint, marketability—follows from that.
Side by side
| Bid | Ask | |
|---|---|---|
| Field mark | Usually shown on the left side of a two‑column quote, often labeled 'Bid' or 'B'. | Usually shown on the right side of a two‑column quote, often labeled 'Ask', 'Offer', or 'A'. |
| Who initiates | The price at which a market participant can sell immediately; the bid is the resting order from a buyer. | The price at which a market participant can buy immediately; the ask is the resting order from a seller. |
| Typical level | The bid is normally lower than the ask in a normal market. | The ask is normally higher than the bid in a normal market. |
| Spread relation | The bid is the lower bound of the quoted spread. | The ask is the upper bound of the quoted spread. |
| Midpoint use | The midpoint is calculated as (bid + ask) / 2; the bid is one input. | The midpoint is calculated as (bid + ask) / 2; the ask is the other input. |
| Variation by venue | Whether the bid is firm, indicative, or subject to last‑look depends on the venue and instrument; rules vary by broker, country, and regulator. | Whether the ask is firm, indicative, or subject to last‑look depends on the venue and instrument; rules vary by broker, country, and regulator. |
Which word to use
Use bid when you are describing the price at which someone can sell or the lower side of a quote, and use ask when you are describing the price at which someone can buy or the higher side of a quote.
Family: XI · Look-alikes · Index A–Z