Bid and ask意思

"Bid" and "ask" are terms used in the context of financial markets, particularly in the trading of stocks, bonds, and other securities. They refer to the prices at which buyers (market participants known as "bidders" or "buyers") are willing to buy a security (the "bid price") and sellers are willing to sell a security (the "ask price" or "offer price").

Bid Price: The bid price is the highest price that a buyer is willing to pay for a security. When a buyer places a bid, they are indicating their desire to purchase a security at a specific price or lower. The bid price is typically lower than the ask price.

Ask Price: The ask price is the lowest price at which a seller is willing to sell a security. When a seller places an ask, they are indicating their desire to sell a security at a specific price or higher. The ask price is typically higher than the bid price.

The difference between the bid price and the ask price is known as the "bid-ask spread." This spread represents the cost of trading the security and is a reflection of the supply and demand for the security in the market. The bid-ask spread can vary depending on the liquidity, volatility, and other factors affecting the security.

In a trading environment, when a buyer and seller agree on a price within the bid-ask spread, a trade occurs. The buyer's bid is matched with the seller's ask, and the transaction is executed at the agreed-upon price.

In summary, "bid" refers to the price at which buyers are willing to buy, and "ask" refers to the price at which sellers are willing to sell. The bid-ask spread is the difference between these two prices and represents the cost of trading in the market.