Bid quantity refers to the number of shares or securities a trader or investor might buy at a specific price set by the market maker. The bid price is the amount each share would cost for the traders or investors to buy shares or securities.
The stock market is packed with numerous terminologies that every investor or trader must be aware of. Similarly, we have another interesting one known as bid quantity and bid price. Let’s take a closer look as to what each of the terminologies means.
Bid quantity
Reminiscent from its name, bid quantity is the number of shares that a trader and investor is willing to purchase at a specified price. The price is variable as the bid that is made differs greatly from different buyers, and there are different quantities from each trader. The market maker decides all of the pricing where the asking price is displayed, and the bid quantity can be decided.
Bid price
The price at which a trader or investor is willing to purchase the shares for a specific price set by the market maker. It could be different for different securities that you are willing to trade.