Glossary
Bid: definition
The bid is the highest price a buyer is currently willing to pay. If you sell immediately, the bid is the side you hit.
In practice
A wide gap between bid and ask is a sign that the market will charge you for urgency. Stops that become market orders sell at the bid available at the time, which can be far from the trigger if the book has emptied. Funds and CFDs may show a single price; the bid and ask can still be embedded in how that price is produced. The bid is the exit you can actually take.
A worked example
You own a small-cap share. The last trade was 5.00, the bid is 4.70 and the ask is 5.20. A market sale is a sale at 4.70 if that bid has size, not at 5.00.
Related
Sources and review
Last reviewed: 2026-10-13. Next review due 2027-04-13. Status: editorial review of this page, not a live verification of every third-party fee.
Author: WiT Markets Editorial, Editorial desk. The WiT Markets editorial desk writes explanatory pages, comparison context and research notes. It separates sourced facts from items that are not confirmed, and it does not provide personal recommendations.
Reviewed by: WiT Markets Research Review.
Primary and regulatory sources
- Investor.gov — checked 2026-10-13