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The ask price, also known as the offer price, is the lowest price at which a seller is willing to sell a security, asset, or commodity in the market. It is the price a buyer must pay to purchase the asset. The ask price is usually higher than the bid price, which is the highest price a buyer is willing to pay for the same asset. The difference between the bid price and the ask price is known as the bid-ask spread, and it represents the transaction cost for the buyer.
If a stock’s ask price is $50, it means that the seller is willing to sell the stock for at least $50. A buyer would need to offer $50 or more to purchase the stock.
• The lowest price at which a seller is willing to sell an asset.
• Higher than the bid price, forming the bid-ask spread.
• Indicates the cost to immediately acquire an asset in the market.
The ask price is the minimum price a seller will accept, while the bid price is the maximum price a buyer is willing to pay.
The ask price is important because it represents the cost that a buyer must pay to acquire an asset immediately.
The bid-ask spread represents the difference between the bid price and the ask price, indicating the transaction cost for the buyer.
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