What is Ask Price?

Question

What is Ask Price?

Accepted Answer

The **Ask Price**, or **offer price**, is the lowest price a seller is willing to accept for a security or currency pair, representing the rate at which a trader can execute an immediate buy order for the base currency. This price is always the higher of the two rates in a foreign exchange quote, with the difference between it and the Bid Price constituting the transaction's spread.

Ask Price

What is Ask Price?

What is the Ask Price in foreign exchange trading and how is it determined by market dynamics and liquidity providers?

How does the Ask Price interact with the Bid Price to form the Bid-Ask Spread, and why is this spread crucial for trading costs and market efficiency?

How does the Ask Price influence the execution of different order types, such as market orders and stop orders, in a live trading environment?

How is the Ask Price utilized in advanced trading strategies like arbitrage and hedging within the context of institutional risk management?

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