Ask Price
The ask price is the price at which a seller is willing to sell a security. It is also known as the offer price, asking price, or simply the ask. The ask price is usually higher than the bid price, which is the price at which a buyer is willing to buy a security. The difference between the bid and ask prices is known as the bid-ask spread. The ask price is the lowest price at which a seller is willing to sell a security.
History of Ask Price
The ask price has been used in financial markets since the early days of trading. In the past, the ask price was determined by the seller and was based on the perceived value of the security. As markets have become more efficient, the ask price is now determined by the market forces of supply and demand. The ask price is determined by the amount of buyers willing to pay the price and the amount of sellers willing to sell at that price.
Comparison Table
| Term | Definition |
|---|---|
| Ask Price | The price at which a seller is willing to sell a security. |
| Bid Price | The price at which a buyer is willing to buy a security. |
| Bid-Ask Spread | The difference between the bid and ask prices. |
Summary
The ask price is the price at which a seller is willing to sell a security. It is determined by the market forces of supply and demand. The ask price is usually higher than the bid price, which is the price at which a buyer is willing to buy a security. The difference between the bid and ask prices is known as the bid-ask spread. For more information about the ask price, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bid Price
- Bid-Ask Spread
- Market Price
- Market Order
- Limit Order
- Stop Order
- Stop-Limit Order
- Market Maker
- Spread Trading
- Scalping
