> ## Documentation Index
> Fetch the complete documentation index at: https://ilovecoffee.compute.exchange/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Bids and Asks

At the Compute Exchange, **Bids** and **Asks** form the foundation of how compute resources are priced and traded. This system allows buyers to define the price they are willing to pay, while providers set the price they expect for their resources. The marketplace dynamically adjusts based on availability, demand, and provider preferences to facilitate fair and efficient transactions.

## Understanding Bids and Asks

### Bids (Buy Orders)

A **Bid** represents a buyer's offer to purchase compute resources at a specific price. Buyers specify:

* The type and quantity of compute resources they need.

* The price they are willing to pay.

* Additional conditions such as duration or performance requirements.

### Asks (Sell Orders)

An **Ask** is a listing created by a provider that specifies the price at which they are willing to sell their compute resources. Providers define:

* The type and availability of resources.

* The asking price per unit.

* Any constraints or terms attached to the offer.

## How A Match Works

A match happens when our system successfully pairs a Bid (buy offer) with an Ask (sell offer) based on both price alignment and resource availability.

## Next Steps

* [Learn how to place a Bid](../buyer/placing-a-bid).

* [Update or manage your existing Bids](../buyer/updating-a-bid).

* [Create an Ask](../provider/creating-an-ask) to sell compute resources.