Glossary of Terms

Search common forex trading terms and definitions from A to Z.

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Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.

Best bid

What is the best bid?

The Bid, also known as the Sell, is the highest price that a bank or a brokerage is willing to buy an asset from a trader. That is to say, it is the most a trader can receive when he sells an asset or security. Along with the Ask (also known as the Buy), the Bid is one half of a price quotation, which is the indicative cost upon which the buyer and seller agree when trading forex and CFDs.

The Bid rate is always lower than the Ask rate, and the difference between the two is referred to as the Spread. Each broker and bank has its own bid, that is to say, its own highest price that it is willing to pay for an asset, and different banks may have different bids. The highest bid offered by any bank or broker is known as the best bid.

How do forex traders use best bid?

Seeing the best bid (and its counterpart, the best ask), enables traders to choose with which brokerage or bank they wish to trade forex and CFDs, so that they may see the highest potential earnings, while minimizing their risks and losses as much as possible.

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