Offer/Ask Price
The offer/ask price is the price at which a seller is willing to sell a security or asset and the price at which a buyer is willing to buy it. The offer/ask price is also known as the “bid/ask” or “bid/offer” price. The difference between the offer/ask price and the last traded price is known as the bid/ask spread. The bid/ask spread is an indication of the liquidity of the security or asset.
History of the Term
The offer/ask price has been used in the financial markets since the early days of trading. It is a fundamental concept in the stock market, and it is used to determine the price at which a security or asset can be bought or sold. The offer/ask price is determined by the supply and demand of the security or asset in the market. When the demand is high, the offer/ask price will be higher, and when the supply is high, the offer/ask price will be lower.
Comparison Table
| Price | Offer/Ask Price | Last Traded Price |
|---|---|---|
| High Demand | Higher | Higher |
| Low Demand | Lower | Lower |
Summary
The offer/ask price is an important concept in the financial markets. It is the price at which a seller is willing to sell a security or asset and the price at which a buyer is willing to buy it. The difference between the offer/ask price and the last traded price is known as the bid/ask spread. For more information about the offer/ask price, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bid/Ask Spread
- Market Price
- Market Maker
- Limit Order
- Market Order
- Stop Order
- Stop Limit Order
- Short Selling
- Day Trading
- Scalping
