Bid Price 

The bid price is the price that a broker is offering to pay traders for an asset.

The bid price is the price that a broker is offering to pay for an asset. When you place a sell order or enter a short position, your trade is executed using the bid price, as you’re technically selling to someone buying, in this case, the broker.

New traders mistakenly assume the bid price is the price they pay for buy orders and long positions. Confusingly, the terms bid and ask are defined in the broker’s perspective, not the traders. To make sense of the bid and ask prices, you should invert them.

The bid price is always lower than the ask price because the broker always wants to buy at a lower price than it sells. The difference between the bid price and the ask price is known as the spread.