What is the Difference Between Bid, Ask, and Last Price?

When viewing market data or placing orders, you might see several price fields such as Bid, Ask, and Last Price. These represent different meanings and may not be the same.

In simple terms:

1. Bid Price: The highest price a buyer is willing to pay in the current market.

2. Ask Price: The lowest price a seller is willing to accept in the current market.

3. Last Price: The price at which the most recent transaction was completed.

Bid and Ask are current quotes and do not represent completed transactions; the Last Price represents the most recent completed transaction.

Which Price Should You Refer to When Buying or Selling?

The reference price varies depending on the trading direction:

For example:

• If you want to buy, the Ask Price is usually more relevant than the Bid Price.
• If you want to sell, the Bid Price is usually more relevant than the Ask Price.
• To find out the most recent transaction price of a stock, you can check the Last Price.