Ask Price

What Is an Ask Price?

An ask price, also called the offer price, is the lowest price at which a seller will sell a security at a given moment. When an investor buys at the current market price, the trade usually happens at the ask. The ask is one half of a two-sided quote. The other half is the bid price, the highest price a buyer is currently willing to pay.

How the Ask Price Works

Exchanges and brokers display the ask next to the bid in a quote that updates continuously as orders are placed and canceled. Sellers post asks above the prices buyers are offering, and buyers post bids below the prices sellers are asking. When a buyer submits an order that matches the lowest ask, a trade occurs at that price. The gap between the two prices is the bid-ask spread. The quote also shows the ask size, which is the number of shares available at that price.

Ask prices reflect supply and demand. If many holders want to sell and few buyers are present, asks tend to drift lower. If buyers are eager and sellers are scarce, asks tend to rise. The displayed ask can change within seconds.

An Example

Suppose a stock is quoted with a bid of $50.00 and an ask of $50.05. An investor placing a market order to buy would typically pay close to $50.05 per share. An investor placing a market order to sell would typically receive close to $50.00. Because of this gap, a round trip trade costs the spread even before any commissions or fees. Actual execution prices depend on order size and available liquidity.

Why It Matters to Investors

The ask helps investors estimate the true cost of trading. A limit order lets a buyer set the highest price they will pay, so the order fills only at or below that level. In thinly traded securities, the ask can sit well above recent trade prices, so reviewing the quote before placing an order helps show what the trade is likely to cost.