{"id":80,"date":"2021-05-27T11:53:50","date_gmt":"2021-05-27T11:53:50","guid":{"rendered":"https:\/\/www.learnstockmarket.in\/brokers\/?p=80"},"modified":"2021-05-27T11:53:54","modified_gmt":"2021-05-27T11:53:54","slug":"bid-and-offer","status":"publish","type":"post","link":"https:\/\/www.learnstockmarket.in\/brokers\/zerodha\/bid-and-offer\/","title":{"rendered":"What is Bid and Offer in Zerodha?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Before you buy a stock from Zerodha, you can take a look at \u2018Market Depth\u2019 which shows you the latest \u2018Bid and Offer\u2019 orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what is bid and offer in Zerodha?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bid is the highest price a \u2018buyer\u2019 is willing to pay for a share. Offer is the lowest price a \u2018seller\u2019 is willing to sell a share.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After you click on \u2018Market Depth\u2019, Zerodha will show 5 highest bids from buyers. And 5 offers from sellers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us take an example of ICICI Bank share.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"633\" height=\"443\" src=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Bid-and-Offer-Zerodha.png\" alt=\"Bid and Offer Zerodha\" class=\"wp-image-81\" srcset=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Bid-and-Offer-Zerodha.png 633w, https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Bid-and-Offer-Zerodha-300x210.png 300w\" sizes=\"auto, (max-width: 633px) 100vw, 633px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The above image is \u2018Bid and Offer\u2019 of ICICI Bank.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>0.14% is the percentage rise in share price today.<\/li><li>\u20b9 653.40 is the LTP or \u2018Last Traded Price\u2019.<\/li><li>Below that, Bid is on the left side and Offer is on the right.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let us understand the \u2018Bid and Offer\u2019 numbers in more detail.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the time when the image was captured, the highest price a buyer was willing to pay was \u20b9 653.35. There were 2 orders at this price and the quantity they wanted to buy was 103 shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the right side, the lowest price a seller was willing to sell shares of ICICI Bank was \u20b9 653.40 &#8211; One person was selling 6 shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let\u2019s assume you want to buy 300 shares of ICICI Bank at any price. You would have to place a \u2018Market order\u2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As soon as you click \u2018buy\u2019, the following would happen:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>6 shares would be purchased at \u20b9 653.40<\/li><li>1 share would be purchased at \u20b9 653.45<\/li><li>292 shares would be purchased at \u20b9 653.50<\/li><li>1 share would be purchased at \u20b9 653.60<\/li><li>Total 300 share purchased at average of \u20b9 653.498.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"740\" height=\"375\" src=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Buy-Market-Order-from-Offer.png\" alt=\"Buy Market Order from Offer\" class=\"wp-image-82\" srcset=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Buy-Market-Order-from-Offer.png 740w, https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Buy-Market-Order-from-Offer-300x152.png 300w\" sizes=\"auto, (max-width: 740px) 100vw, 740px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">That is how an order gets executed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The same would be applicable if a \u2018sell\u2019 order is placed. Let\u2019s say someone wanted to sell 300 shares at any price. A \u2018market order\u2019 would be placed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is how it will be processed or executed:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>103 shares would be sold at \u20b9 653.35<\/li><li>Remaining 197 shares would be sold at \u20b9 653.30.<\/li><li>Total 300 shares sold.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, let us say you want to buy 500 shares at exactly the price of \u20b9 653.20. You will have to place a \u2018limit order\u2019 and mention the price as \u20b9 653.20.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The order would not get immediately executed. In the image above, there were buy orders for 2003 shares at \u20b9 653.20. Your order would get added to this.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since your order was for 500 shares, it will get added to the pending order of 2003. It will now show as 2503 quantity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You would now have to wait for some seller to agree to sell the shares to you at \u20b9 653.20. Until there is a seller for that price, your order would be pending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After all higher price orders are executed, then your turn \u2018could\u2019 come. \u2018Could\u2019 because, if the price continues to rise and there are no sellers, your order will not get your shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is the reason why \u2013 if a buyer wants shares immediately, \u2018market order\u2019 has to be placed. Same applies to immediate execution of sell order.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the bottom of the image, there is the \u2018Total\u2019 row.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"633\" height=\"443\" src=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Total-Bid-and-Offer.png\" alt=\"Total Bid and Offer\" class=\"wp-image-83\" srcset=\"https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Total-Bid-and-Offer.png 633w, https:\/\/www.learnstockmarket.in\/brokers\/wp-content\/uploads\/2021\/05\/Total-Bid-and-Offer-300x210.png 300w\" sizes=\"auto, (max-width: 633px) 100vw, 633px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-44eb8624-6ba3-4031-b807-889350a4bdd9\"><li>The total number of shares buyers want to buy is 9,21,678.<\/li><li>The total numbers of shares sellers want to sell is 10,66,269.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This number helps us understand if there are more buyers or sellers for a particular share. In the ICICI Bank example, there were more sellers than buyers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Zerodha also gives you the option to expand this box and see \u2018Top 20 Bid and Offer\u2019 at different price points.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have any confusion related to &#8216;Bid and Offer&#8217;, please post your question in the comments section below. It would be our pleasure to answer any question. Thank you for reading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before you buy a stock from Zerodha, you can take a look at \u2018Market Depth\u2019 which shows you the latest \u2018Bid and Offer\u2019 orders. So, what is bid and offer in Zerodha? Bid is the highest price a \u2018buyer\u2019 is willing to pay for a share. Offer is the lowest price a \u2018seller\u2019 is willing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":81,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-80","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-zerodha","et-has-post-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/80","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/comments?post=80"}],"version-history":[{"count":2,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/80\/revisions"}],"predecessor-version":[{"id":85,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/80\/revisions\/85"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/media\/81"}],"wp:attachment":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/media?parent=80"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/categories?post=80"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/tags?post=80"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}