As opposed to bidding, ask represents the lowest price the seller is willing to sell the asset or security. Also known as the offer price, the ask price is always higher than the bid price, and the difference between the two is called the spread.
To give an example, if the ask price for a stock is £3 x 100, this means that the seller is willing to sell 100 shares at £3 apiece. Apart from the price of a stock, the ask price can also determine the number of units that can be bought at the specified price.
In essence, bid and ask prices reflect supply and demand dynamics in the market.
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