Ask (Offer) Price
The ask (offer) price is the price at which a seller is willing to sell a security, commodity, or currency. It is the opposite of the bid price, which is the price at which a buyer is willing to purchase the security, commodity, or currency. The difference between the two prices is known as the bid-ask spread. The ask price is usually higher than the bid price, as the seller wants to make a profit on the sale. The ask price is also known as the offer price.
History of Ask (Offer) Price
The concept of the ask price has been around for centuries, as it is a fundamental part of the buying and selling process. In the stock market, the ask price is the price at which a broker is willing to sell a particular stock. The ask price is determined by the market forces of supply and demand. When there is a high demand for a particular stock, the ask price will be higher than when there is a low demand for the stock.
The ask price is also used in the foreign exchange market, where it is the price at which a currency can be bought. The ask price is determined by the market forces of supply and demand, and it is usually higher than the bid price. The difference between the two prices is known as the bid-ask spread.
Table of Comparisons
| Term | Definition |
|---|---|
| Ask (Offer) Price | The price at which a seller is willing to sell a security, commodity, or currency. |
| Bid Price | The price at which a buyer is willing to purchase the security, commodity, or currency. |
| Bid-Ask Spread | The difference between the ask and bid prices. |
Summary
The ask (offer) price is the price at which a seller is willing to sell a security, commodity, or currency. It is the opposite of the bid price, which is the price at which a buyer is willing to purchase the security, commodity, or currency. The difference between the two prices is known as the bid-ask spread. The ask price is usually higher than the bid price, as the seller wants to make a profit on the sale. For more information about the ask (offer) price, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bid Price
- Bid-Ask Spread
- Market Order
- Limit Order
- Stop Order
- Market Maker
- Short Selling
- Day Trading
- Margin Trading
- Options Trading
