Bid exchange (price) sale price

Operations on the stock exchange have two directions - buying and selling, each of the operations is carried out at its own price.

Bid (price) is the price at which you sell a currency or other asset on the exchange; this indicator is always less than the Ask selling price and comes first in the currency quote.

In other words, bid is the price of purchasing a previously purchased asset from you or the price at which you open a short position to sell.

Sometimes it is also called the demand price, because it is the bid that more fully characterizes the level of demand for a certain financial instrument.

This price is used in two cases: all sell transactions are opened at it (without collateral) and previously opened buy transactions are closed.

This is clearly visible in the window for opening transactions, when under the Sell button you see the bid price on the exchange, which is used in a sell transaction:

 

Where else is bid used besides the Forex exchange?

The use of this term is quite widespread; in addition to the Forex market, it is also used in other areas of activity:

In foreign exchange transactions of commercial banks, the purchase and sale rates are always indicated. You can see an example of this application in any exchange office or currency quote :

On the stock exchange, there is also a rate for selling blocks of shares.

When dealing with precious metals and other commodity values. For example, gold is bought from you for $50 per gram and sold for $60 per gram.

On the commodity exchange, there are quotes for goods such as oil, wheat, cotton, and gas. 

The bid indicator is always less than this, since this is the price that is taken into account if you open a sell transaction in the trader’s trading platform by pressing the “Sell” button.

It is at the bid (price) on the exchange that you will conclude all sales transactions, and in order to make a profit you will need to wait for the price to fall even further, it must overcome the spread value and fall below the ask purchase indicator .

Since you will have to close a sell transaction at the ask price, if you make a sale and immediately close the deal with a purchase, you will receive a loss in the amount of the broker’s spread.