Ask - The ask is the term used when one trader expresses an intention to buy an asset or financial instrument from another trader or institution.
The “ask” price is also known as the “offer” price. The ask price is one of the prices often quoted in the buying and selling of financial assets. It represents the price at which you can buy an asset, and as such will usually be higher than the market price.
The opposite of the ask is the bid.What is the Ask Price?The ask price is the price at which a seller is willing to sell a particular item. It is also referred to as the offer price. The ask price will typically be higher than the quoted bid price, which is the price at which traders are willing to buy an asset.Ask and Bid PricesLong and short positions are used by traders as a way of establishing market sentiment and predictability. If a large number of traders wish to purchase an asset, it is likely that the asset's value will increase. Conversely, if a high number of traders wish to sell an asset, it is likely that the asset's value will decrease.
Evaluating bid and ask prices allows for better predictions about the possible future values of specific assets. For example, if you see that the bid price for a stock is $10 and the ask price is $11, it may be possible to predict a future rise in value of the stock, or conversely, a fall in value of the stock.
