Ask Price

The Ask Price, also known as the offer price, represents the lowest price at which a seller is willing to sell an asset in a trading market. It forms one half of the bid-ask spread, with the bid price being the highest price a buyer is willing to pay.

Key Points

• The ask price is always higher than the bid price
• The difference between bid and ask prices forms the bid-ask spread
• Lower spreads typically indicate higher market liquidity
• Ask prices are constantly updated in real-time during market hours

Importance in Trading

Understanding ask prices is crucial for:

• Determining entry points for trades
• Evaluating market liquidity
• Calculating potential transaction costs
• Making informed trading decisions

Related Terms

• Bid Price
• Spread
• Market Maker
• Liquidity