The lowest price at which a seller is willing to sell an asset at a given moment. It forms one side of the bid-ask spread—the other being the bid price. Buyers must pay the ask price when they want to purchase an asset immediately. In fast-moving or illiquid markets, the ask price can change rapidly due to shifts in supply, demand, and sentiment. A higher ask price compared to the bid reflects lower liquidity or greater risk. Understanding the ask price helps traders assess market dynamics and make informed decisions during order execution.
Example:
An investor reviewing a stock quote sees sellers willing to sell at $75.20 – that amount represents the lowest ask currently available in the market.
