BID Full Form in Share Market

What is the Full Form of BID in the Share Market?

The BID Full Form in the Share Market is Bid and Ask. It refers to the highest price that the buyer would pay to buy a specified number of shares and stocks at any given time. The term asks refers to the lowest price at which the seller would sell the stock. The difference between the bid and ask prices is referred to as the spread, and this is a key indicator of the liquidity of the asset.

How are the BID and ASK prices determined?

The Bid and Ask prices are set by the market and are set by the buying and selling decisions of the individuals and the institutions who are investing in the security. If the demand is more than supply, the Bid and Ask price would grow upwards and vice verse. The overall trading activity in the security would determine the spread.

Bid Size:

The volume and the amount of the bid are important factors in understanding the market liquidity. The bid sizes are given along with the quote. Bid size is different from ask size as the latter is the amount of the security that the investors are asking to sell. Both the bid and ask sizes help investors to determine the demand and supply of the security.