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Ask
(Lowest price a seller will accept)
The Ask (or Offer) price is the lowest amount a seller is willing to accept for a security. Along with the Bid, it determines the bid-ask spread - a key liquidity measure where tighter spreads indicate more liquid markets.
For example, if a stock has a $10.00 bid and $10.05 ask, the spread is $0.05. Market orders execute at ask prices when buying. High-frequency traders often profit from tiny spreads through HFT strategies. The ask size shows how many shares are available at that price. During volatile markets, ask prices can rise rapidly as sellers demand higher premiums for risk.
For example, if a stock has a $10.00 bid and $10.05 ask, the spread is $0.05. Market orders execute at ask prices when buying. High-frequency traders often profit from tiny spreads through HFT strategies. The ask size shows how many shares are available at that price. During volatile markets, ask prices can rise rapidly as sellers demand higher premiums for risk.