Bid Price of a Leverage Contract Law and Legal Definition

According to 17 CFR 31.4 [Title 17 -- Commodity and Securities Exchanges; Chapter I -- Commodity Futures Trading Commission; Part 31 -- Leverage Transactions], bid price of a leverage contract means “the price at which a leverage transaction merchant purchases or is willing to purchase a short leverage contract from a leverage customer, or the price at which a leverage transaction merchant repurchases or is willing to repurchase a long leverage contract from a leverage customer.”