Filter by Categories
Accounting
Banking

Exchanges




Best Bid


The highest price at which market makers, in a given market, offer to buy an investment (e.g., a security: a share of stock, a bond, etc.) from a market participant at a specific time or during a particular time window. It is the highest bid price in the bid queue: on arrival of a bid price that is equal or better to the currently highest buy offer, the exchange would match the bids at the best bid, on a first-come, first filled basis.

For example, a sell order is expected to be executed at the best bid, which is by nature not constant: it always changes in reaction to movement in the supply and demand for a specific security.

The best bid is one leg in the bid-ask spread (the other is the best ask).



ABC
This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*