"Hitting the Bid" is a term used by traders when they agree to sell at the bid price, which is the highest price that a buyer is willing to pay for a security or asset. The "bid-ask spread" is the difference between the highest bid price and the lowest ask price. An individual looking to sell will hit the bid if they wish immediate transactions at that prices.There are many reasons why someone might choose to "hit the bid." Perhaps they need to raise cash quickly and don't have time to wait for a better offer. Or maybe they think that security or asset isn't going to increase in value any time soon and want to lock in their profits now. Whatever the reason, "hitting the bid" can be a smart move - as long as you're comfortable with your decision and understand all of its implications.
