“Ask” refers to the lowest price at which a seller is willing to sell an asset, security, commodity, or service. This is the price that an investor must pay to buy the asset.
The “ask” price is often paired with the “bid” price, which is the highest price a buyer is willing to pay for the same asset. The difference between the ask price and the bid price is known as the “bid-ask spread”.
The ask price, also referred to as the “offer price”, is a critical part of any transaction in financial markets including stock markets, commodities markets, foreign exchange markets, and financial derivatives markets. It helps to provide liquidity, determine market prices, and facilitate trading.
When you see a quote for a stock or other financial instrument, it will usually list both the bid and the ask prices. The price you see quoted on a trading platform for buying a financial instrument is typically the ask price.
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