Home/Glossary/Bid
Home/Glossary/Bid
Market & instruments

Bid

By Jarosław Wasiński • Published: • Updated:
The quoted price at which a buyer or liquidity provider offers to buy an instrument. In a retail currency quote, selling the base currency normally uses the bid. A displayed bid applies to the quoted size and conditions; it does not guarantee that any order size will execute at that price.
Example.

EUR/USD Bid/Ask is 1.1000/1.1002. Selling EUR 10,000 at Bid 1.1000 gives USD 11,000 in a deliverable model before fees. The same sale direction can open a short or close a long; the existing position and accounting mode matter.

The quoting party buys

Bid expresses what a quoting participant offers to pay for the instrument. A retail client normally sells the base currency on this side. It is not the client’s purchase price simply because “bid” means a buy offer: identify whose action is being described.

Size and executable prices

A top Bid does not show every available price for a large order. Confirm the weighted price and quantity of all fills. Credit access, rejected requests and changing quotes can affect execution even when a chart has displayed the level. The spread is Ask minus Bid for compatible simultaneous quotes.

Closing and valuation

A long can be marked against the price at which it could be sold, commonly Bid, rather than against its original Ask entry. The immediate negative valuation can reflect spread crossing. When actual Ask entry and Bid exit already determine P&L, do not deduct that same spread again; separately reconcile commission and financing.

FAQ

Is Bid the price used to open a long?

In the conventional two-way model, a purchase opens a long at Ask; selling to close it uses Bid.

Can the Bid change without a trade?

Yes. A quote update does not necessarily represent a reported transaction.

← Back to the full glossary

Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
  • Author of hundreds of in-depth market commentaries, structural analyses, and educational materials for traders and investors.
  • Advocate for market transparency, promoting education grounded in hard data and institutional reports (BIS, ESMA, CFTC).

All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.