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  • Monday, April 28, 2025
  • The Financial Encyclopedia
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Derivatives

  Derivatives   |   Terms
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  • February 26, 2023
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Bid Price

The price which a buyer is willing to pay to possess or take hold of an asset. The bid price is the opposite of ask price. The terms “ask” and “bid” are usually used in transactions related to stocks, bonds, currencies, derivatives, and precious metals. Aggregating all bid prices for an asset helps determine the amount demanded of that asset.


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