bid price: meaning, definition, pronunciation and examples
C1Formal, Technical
Quick answer
What does “bid price” mean?
The price at which a buyer is willing to purchase a security, asset, or commodity.
Audio
Pronunciation
Definition
Meaning and Definition
The price at which a buyer is willing to purchase a security, asset, or commodity.
In auctions, the highest price a buyer offers; in finance, the quoted price a dealer will pay for a security; in e-commerce, the maximum price a buyer sets for an automated purchase.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. In UK financial contexts, 'bid price' may be more commonly associated with traditional stock exchanges, while in the US it's ubiquitous across all trading platforms.
Connotations
Neutral technical term in both varieties.
Frequency
Equally frequent in both UK and US financial/business discourse.
Grammar
How to Use “bid price” in a Sentence
The bid price for [asset] is [amount].[Buyer] placed a bid price of [amount].The bid price exceeded the reserve.Vocabulary
Collocations
Examples
Examples of “bid price” in a Sentence
verb
British English
- They will bid a price at the auction.
- No one bid a higher price for the antique.
American English
- Investors can bid a price through the electronic platform.
- We bid a price well above market value.
adverb
British English
- The shares were trading bid-price aggressively.
- He valued the property bid-price cautiously.
American English
- The algorithm adjusts bid-price dynamically.
- They priced the offering bid-price conservatively.
adjective
British English
- The bid-price differential was narrow.
- Bid-price volatility increased.
American English
- The bid-price quote came in low.
- Bid-price competition was fierce.
Usage
Meaning in Context
Business
Central to trading, procurement, and auctions. Example: 'The board will consider the highest bid price for the subsidiary.'
Academic
Used in economics, finance, and game theory papers discussing market microstructure.
Everyday
Rare in casual conversation except when discussing online auctions (e.g., eBay) or house buying.
Technical
Precise term in stock trading platforms, bond markets, and algorithmic trading.
Vocabulary
Synonyms of “bid price”
Vocabulary
Antonyms of “bid price”
Watch out
Common Mistakes When Using “bid price”
- Using 'bid price' to mean 'the price of making a bid' (fee).
- Confusing 'bid price' with 'reserve price' (the minimum acceptable price for the seller).
FAQ
Frequently Asked Questions
Not exactly. 'Bid price' refers to any offered buying price. The 'winning bid' is the highest bid price that is accepted in an auction.
Yes, in an auction or market, multiple buyers may submit different bid prices. The highest one typically gets priority.
The bid price (what buyers will pay) is typically lower than the ask price (what sellers will accept). The difference is the spread, which represents the market maker's profit and transaction cost.
Yes. It's common in auctions (art, antiques, property), procurement (tenders), and online marketplaces like eBay, where buyers place bids.
The price at which a buyer is willing to purchase a security, asset, or commodity.
Bid price is usually formal, technical in register.
Bid price: in British English it is pronounced /ˈbɪd ˌpraɪs/, and in American English it is pronounced /ˈbɪd ˌpraɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The bid price is the price you pay.”
- “Mind the gap between bid and ask.”
Learning
Memory Aids
Mnemonic
BID = Buyer's Intended Deal. The price a Buyer Is Determined to pay.
Conceptual Metaphor
MARKET AS BATTLEFIELD (competing bids), VALUE AS HEIGHT (higher bid price).
Practice
Quiz
In which scenario is 'bid price' used correctly?