Bid Price

What is Bid Price ?

The bid price in cryptocurrency trading refers to the highest price a buyer is willing to pay for a specific digital asset, such as Bitcoin or Ethereum. When a trader places a buy order, they quote a bid price that represents how much they are prepared to offer for the asset. The bid price is typically lower than the ask price, which is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the "spread," and it can indicate the liquidity and market activity of the asset. 

Bid Price Example

For example, in a highly liquid market like Bitcoin, the spread between the bid and ask prices tends to be smaller, meaning trades can occur more quickly and at more favorable prices for both buyers and sellers. Traders can submit limit orders at their preferred bid price, and if the market reaches that price, the order will be filled. However, if the market moves away from the bid price, the order may remain unfilled.