Bid Your Price
A price that is provided for a service, contract or a commodity is known as ‘bid price’. It is informally known as ‘bid’ in many administrations and marketplaces. Typically, the “ask” is higher than the bid. The bid-ask spread is nothing but the difference between asking and bid. An unsolicited bid is when bids are done even when sellers are not willing to sell their asset and are also known as an unsolicited offer. The automatic trading software is known as Infinity App Software also offers to bid but upon hearing about its unbelievable features it is offering, it was reviewed thoroughly. Upon review, it was found that this app is nothing but a scam which offers nothing but how to trap people. The testimonies are false just like the owner of the software. It is recommended that staying away from this app is a good idea.
In simple words, the amount of cash that a purchaser is willing to offer in order to buy a security is known as the bid price. The bid price is in contrast with the selling price and this is typically the same amount that the seller is wishing to sell that asset for.
These are designed in a specific manner to impose an outcome that is advantageous for the organization that is placing the bid. Let us take an example where the asking price of an item is fifty dollars there is a person who wants to buy it for forty dollars, then they make a bid for thirty dollars and then behave like they are compromising and giving up some amount and meet the seller in middle, resulting in being the same place where they wanted to be at first. There is a possibility of bidding war if there is more than one buyer who is willing to bid on the same item. In the bidding war, more than 1 buyers will start placing a bid in increment, one higher than the other.
Bidding war explained with an example
Suppose there is a company who has fixed the asking price for a good at six thousand dollars. Bidder X places a bid of four thousand dollars and bidder Y places a bid for four thousand and five hundred dollars. To this bidder X again places his bid of five thousand dollars. This will go on and the price for that good will be settled when a purchaser will make a bid that his rivals will not be able to top.