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BidThe price a potential buyer is willing to pay for a security. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation. In trading, we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price.Bid Similar MatchesBid priceBid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock. Related: Ask, offer. Cabinet bidCabinet bidA cabinet bid, which is a facility enabling holders of deep out-of-the-money options to close their positions at a nominal £1 per contract. Hit the bidHit the bidA dealer who agrees to sell at the bid price quoted by another dealer is said to "hit" that bid. Antithesis of take the offer. Bid offer spreadBid offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price Bid to cover ratioBid to cover ratioThe ratio of the number of bids received in a bids bids auction compared to the number of accepted bids. Further Suggestionsbid priceCompetitive bidders Bid away London Interbank Bid Rate (LIBID) Asked to bid or offer Competitive bidding Stalking horse bid Bid/ask spread bid/offer spread Bid wanted Bidding up Bid asked spread Bidding through the market Two tier bid Noncompetitive bid Bidding buyer |
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