Bid Price

The bid price is the highest price that a specific buyer will pay for a specific product or service. With regards to financial markets, it is the value buyers offer for an asset, like a commodity, security, or cryptocurrency.
A trading order book comprises of numerous bid prices (in favor of buyers) and asking prices (in favor of sellers). The highest bid price is dependably lower than the least asking price and the difference between them is alluded to as a bid-ask spread.
Traders or investors that will sell their assets or stock positions need to either acknowledge one of the bid prices accessible on the order book (in a perfect world, the highest one) or to set an asking price and hold on until a buyer ultimately bids against that value, taking care of the request.
In financial markets, traders have the power to conclude what price they will buy or sell an asset and they do as such at the moment they make their order. Obviously, assuming that the price they set is too far separated from the current market price, their order will not be filled.
In a situation where different buyers are vieing for an asset and begin putting their bids, in a steady progression, we would have what is at times alluded to as a bidding war. While a bidding war happens, buyers supplant their bids increasingly high to cover the bids of other contending buyers and this would presumably cause the market prices for that asset to quickly increase.

Features

• The bid price is the highest price a buyer will pay for a security or asset.
• A bid price is generally shown up at through a course of negotiation between the seller and a single buyer or various buyers.
• The difference between the bid price and ask price is known as the market's spread, and is a measure of liquidity in that security.