In trading, the term “offer” is often used interchangeably with the term “ask”. It refers to the lowest price at which a seller is willing to sell a security or other financial instrument.
When you hear someone refer to the “offer price,” they’re talking about the price at which you can buy an asset. This is different from the “bid price,” which is the price at which you can sell an asset.
The “offer” or “ask” price is usually higher than the “bid” price. This difference, known as the bid-ask spread, is essentially the profit for the market maker or broker, and it represents the cost of executing a transaction for the buyer and seller.
It’s also worth noting that in the context of initial public offerings (IPOs) or other types of stock issuances, the “offer” can refer to the price at which new shares are being offered to investors by the issuing company.
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