Hit the Bid
Hit the bid is a financial term used to describe the action of buying or selling a security at the current market price. It is a common practice in the stock market, and it is used to take advantage of short-term price fluctuations. The term is derived from the phrase “hit the bid”, which is used to indicate that a trader is willing to buy or sell a security at the current market price.
History of the Term
The term “hit the bid” has been used in the financial markets since the late 19th century. It was originally used to describe the action of a trader who was willing to buy or sell a security at the current market price. The term was popularized in the early 20th century, when the stock market began to become more popular and accessible to the general public. Since then, the term has been used to describe the action of buying or selling a security at the current market price.
Comparison Table
| Action | Hit the Bid |
|---|---|
| Buying | At the current market price |
| Selling | At the current market price |
Summary
Hit the bid is a financial term used to describe the action of buying or selling a security at the current market price. It is a common practice in the stock market, and it is used to take advantage of short-term price fluctuations. The term is derived from the phrase “hit the bid”, which is used to indicate that a trader is willing to buy or sell a security at the current market price. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Market Order
- Limit Order
- Stop Order
- Stop-Limit Order
- Market Maker
- Bid-Ask Spread
- Short Selling
- Day Trading
- Scalping
- Arbitrage
