What is Bid Price? - Definition & Explanation
Definition
The price at which a broker will buy a currency pair from a trader.
Bid Price Explained
The bid price is the price at which a broker or market maker is willing to buy a currency pair from you. It is always lower than the ask price. When you want to sell a currency pair, you receive the bid price.
Related Terms
Ask Price
The price at which a broker will sell a currency pair to a trader.
Spread
The difference between the bid and ask price, representing the broker's primary cost to the trader.
Bid-Ask Spread
The difference between the bid and ask price of a currency pair.
Pip
The smallest standard price movement in a currency pair, typically 0.0001.