Ask Price vs Bid Price - Trading

 

 When trading stocks, bonds, currencies or other securities, the prices that the buyer and seller deal with are slightly different. A bid price — usually referred to simply as the bid — is the highest price that a buyer (i.e., bidder) is willing to pay for the security. Ask price — also called offer price, asking price, or simply offer or ask — is the lowest price a seller will accept for the security.

These prices are rarely the same: the ask price is usually higher than the bid price. If you are buying a stock, you pay the ask price. If you sell a stock, you receive the bid price. The difference between the two prices is called the spread.

	Ask Price	Bid Price
Definition	Ask price, also called offer price, offer, asking price, or simply ask, is the price a seller states she or he will accept for a good.	A bid price is the highest price that a buyer is willing to pay for a good. It is usually referred to simply as the "bid."