Bidding up

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Also found in: Idioms.

Bidding up

Moving the bid price higher.

Bidding up

The act of an investor raising his/her buy limit price as a result of steadily rising prices for the security involved. When an investor makes a buy limit order, he/she sets a (relatively low) price at which the broker is to buy the security. If, however, the price increases significantly and shows no sign of approaching the buy limit price, then the investor risks not buying the security and missing out on further increases. One bids up in order to avoid this; while it means the investor must spend more to buy the security, it opens up the opportunity for a large return.