Ask Price
Market MechanicsQuick Definition
The lowest price at which a seller is willing to sell a security.
Detailed Explanation
The ask price, also known as the offer price, represents the minimum price that a seller is willing to accept for a security. In the order book, it's the lowest price at which you can immediately buy the asset. The ask price is always higher than the bid price, and the difference between them is called the bid-ask spread. Understanding ask prices is crucial for traders as it directly affects the cost of entering a position.
Real Trading Example
If a stock has a bid price of $50.00 and an ask price of $50.05, you would need to pay $50.05 per share to buy the stock immediately.