METATrading Academy

Share market basics

Bid pricekharidne wale ka bhav

The highest price a buyer is currently willing to pay for a share; the price you receive if you sell immediately with a market order.

The bid price is the highest price a buyer in the order book is offering right now. When you sell with a market order, your shares go to that buyer at the bid. The ask, or offer, is the seller side. On a liquid stock like SBI, bid and ask sit a few paise apart, for example ₹800.05 bid and ₹800.10 ask. On a small-cap with few traders, the bid might be ₹98 and the ask ₹101, and selling at market means accepting ₹98 even though the last trade printed at ₹101. Watching the bid tells you what your shares are really worth this second, not what the screen's last price says. If you want a specific price, place a limit sell above the bid and wait for a buyer to come to you.

Lessons that use this term

Video
Basics7 min read

Investing vs trading: the two halves of the share market

The share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.