📖 Financial Lexicon Term
What is Bid Price?
The price at which a broker will buy a currency pair from you. The difference between bid and ask is the spread.
Detailed Explanation
The Bid Price represents the market price at which a trader can execute a sell order (or close an active buy order). When you go short, your entry is filled at the Bid. The Bid price is always the lower number in a standard bid/ask quote.
💡 Practical Trading Example
If the GBP/USD is quoted as 1.2510 / 1.2512, the bid price is 1.2510. Selling the pair will fill your entry at 1.2510.