Difference between Bid Price and Offer Price

Key difference: The two prices contribute to investor transactions. The bid price is investor’s selling price while the offer price is the investor’s buying price.

A bid price is set by the investor who sells the products in accordance to the price known to the investor. It can be said that the bid price is the motive-oriented price. The bid price is the initial price which starts the transaction and can result into a profitable amount.

The bidder is actually responsible to take the risk, if he is setting any bid price that is the profit or loss depending on the quality of product. The bid price is the price which is set during the auction.

An offer price is said to be the buyer’s price. It is the set price which cannot be changed. This price is mostly offered when there is a sale of bulk quantity of products. Offer prices are mostly in favor of the buyer (customer).

The offer price is also known as the impact price, that is, it does create an impact on the customer when seller sets an offer price on a particular commodity. Offer prices are mostly general prices which are accepted by the public, as it acts as their willing price.

Comparison between Bid Price and Offer Price:

	Bid Price	Offer Price
Owner	It is the seller’s price.	It is the buyer’s price.
Nature	It is a fluctuating price.	It’s a constant price.
Response	There is no impact of the bid price.	It is an impact creator price.
Limits	There is no limit for setting the price here.	The price is fixed and constant.