What is Ask Price & Bid Price?
The ask price, also known as “offer,” is the lowest price for which a seller will agree to sell a product, a share of stock, or security. It is usually lower than the bid price, which is the maximum price a buyer is willing to pay for the asset.
Understanding Ask Price
For a sale to take place, a buyer and a seller must come to an agreement on the price, which is usually a quote between the ask price and the bid price. The difference between the ask price and the bid price is called “spread” and it’s believed to be an important indicator of asset liquidity.