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What Is An Ask Rate?

What is an ask rate? When speaking in terms of currency trading the ask rate is the lowest amount a seller is willing to accept for a given currency trade. It is also known as the ask price, best ask price, or ask amount. Ask rates have an equivalent opposite in the world of currency trading known as the best offer or offer rate. The difference between these two amounts is known as the spread. The spread is typically a few tenths to hundredths of cent in value. This amount is simply the space between where two parties looking to trade a currency exist. Much like any purchase, such as a car or home there exists an amount the seller wants and an amount a buyer is willing to pay. If you were to ask someone what was the lowest amount they would be willing to accept for the car or house they were selling, in currency trading that amount would be their ask rate. Except in currency trading the amount set is not up to the investor themselves, but rather determined by market makers. Sellers and buyers of currency on the major markets, typically major international banks.

Ask Rate Necessity

The ask rate, or ask price, in currency trading does much

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The difference between bid/ask price and bid/ask rate?

Hi! I know the definition of bid and ask but now I get a bit confused of bid/ask price and bid/ask rate...esp. the latter ones......I cannot find any information of bid/ask rate online.....could you tell me their differences? thank you for your help!

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Member since: February 16, 2006 Total points: 4,112 (Level 4)

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Let me guess... bid/ask price is the ratio between the mean value of all bids divided by the mean ratio of all asks. If the result is above 1.0 then the bids are stronger than the asks and it might be impossible to fulfill all requested deals. bid/ask rate seems to be the number of bids versus the number of asks coming in. It might have sense if you had said for which field of application your are asking.

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Bid and Ask

Bid and Ask Prices Investment Dictionary - Bid and Ask Prices The stockstock exchanges determine the value of the stock prices. Here, the bid and ask prices meet while the exchange functions as their intermediary.
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Bid and ask prices are never the same. In fact, the price announced by the seller (the ask price) is always higher than the bid price.
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Bid and Ask Collectively called the "quote," the bid refers to the highest price a buyer is willing to pay for a stock, while the asked is the lowest price a seller will accept.
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Bid and ask prices given by a market maker to indicate valuation but not as an offer to transact. also called numbers only quotation. Related Videos Recommended Articles from InvestorGuide.com ...
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Bid and asked: The most common way a price for an option is quoted. This is the highest bid price and the lowest ask price. For example, 'the May 750 call is currently 50/55'. This means the highest bid is 50 and the lowest offer is 55.
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BID AND ASK. The quoted prices of securities traded in the over-the-counter market. The bid price is the highest price a buyer is willing to offer, while the ask price is the lowest price a seller is willing to accept.
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Bid and Asked Often referred to as a quotation or quote. The bid is the highest price anyone has declared that he wants to pay for a security at a given time and the asked is the lowest price at which anyone is willing to sell at the same time.
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Bid and Asked The bid (the highest price a buyer is prepared to pay for a trading asset) and the asked (the lowest price acceptable to a prospective seller of the same security) together comprise a quotation, or quote.
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Bid and Ask Quote (quotation) at a given point in time, which simultaneously includes the highest bid price (bid) for a security and the lowest offer price (ask). The spread between the highest bid and lowest offer is referred to as 'the touch'.
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Bid and Ask Highest price and lowest price that an investor will pay for a tradable. Black Box A proprietary, computerized trading system whose rules are not disclosed or readily accessible.
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Bid and Asked: The bid is the highest price a prospective buyer is prepared to pay for a specified time for a trading unit of a specified security. The asked is the lowest price acceptable to a prospective seller of the same security.
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bid and ask price The bid and ask price are very important to understand in the stock market. They are the prices you can buy and sell stocks and options at.
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The bid and ask prices largely depend on supply and demand. High demand or low supply will push the prices of stocks up, while little to no demand or a large supply will cause the price to fall. Next: Splits ...
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Together, the bid and ask prices constitute a quotation or quote, and the difference between the two prices is the bid-ask spread. The bid-ask dynamic is common to all stocks and options.
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Main article: Bid and ask The numerical difference between the bid and ask prices is referred to as the bid-ask spread. Most worldwide markets operate on a bid-ask-based system.
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Describes bid and asked prices a broker quotes for a given security. Used for listed equity securities. Bid and ask prices and quantity information from a specialist or from a dealer regarding a particular security (i.e.
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A market with many bid and ask offers. The market is characterized by high liquidity, low spreads, and low volatility. Load ...
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market maker A brokerage or bank that maintains a firm bid and ask price in a given security... market maker spread The difference between the price at which a market maker is willing to buy a...
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Liquidity / liquid market A trading environment characterized by high trading volume, a narrow spread between the bid and ask prices, and the ability to trade larger sized orders without significant price changes.
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The highest bid and the lowest ask (offer) prices among all Market Makers competing in a Nasdaq security; the best bid and ask prices for a security. (See best bid, best ask) inside quote See inside spread inside spread ...
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market maker A trader who will at that moment is willing and able to either buy or sell at stated bid and ask prices. Also known as scalper (q.v.) or scalp-beggar (q.v.).
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Each currency pair listed by your broker is accompanied by an exchange rate that shows the bid and ask price for the currency pair.
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During trading hours, at any moment, bid and ask prices for any actively traded stocks are posted by market makers. The prices can be seen on most trading screens. You can find them, for example, on Tradetrek.
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The spread is the difference of the bid and ask price of given currency. The brokers apply the altered quotes on the transaction fees and earn lot of money.
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Prices in the bid and ask columns are percentages of the bond's face value of $1,000. So, a bid of 105:12 means that a buyer was willing to pay $1053.75, compared to the seller's lowest asking price, 105:14, or $1054.
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The second is that bid and ask prices are commonly closer. The third is that with high trading volume and liquidity the statistics of online trading software as well as the predictive ability of time honored tools such as Candlestick pattern ...
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The disparity between the bid and ask is known as the spread, which reflects the difference between the rate offered by a market maker such as CMS to sell a currency pair and the rate at which the market maker will buy the pair.
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DOM (the book) - list of all BID and ASK limit orders with size waiting for execution. A lot of day traders using this tool for market analysis. If on the DOM exists really big sell offer, then the bid price would fall.
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The difference between the bid and ask price is the spread, which constitutes the cost of the trade. In fact, all traded instruments - stocks, futures, currencies, bonds, etc. - have spread. If a trader buys at 1.
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The difference between the bid and ask price is called the spread. The spread is how forex brokers make money while avoiding charging a commission.
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For example, if the spread, or difference, between the bid and ask, or the highest price offered by a buyer and the lowest price asked by a seller, gets too wide, and trading in the security hits a lull, the specialist might buy, sell, ...
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Specialists must make a market in the stock they trade by displaying their best bid and asked prices to the market during trading hours. They also are required to maintain a "fair and orderly market" in the stocks they trade.
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The size shows you the actual size for the bid and ask orders. So, if you have 1000 * 100, that means there are traders attempting to buy a 1000 shares at the given price, while there is only 100 shares at the sale price.
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A type of market in which each transaction takes place at predetermined intervals and where all of the bid and ask orders are aggregated and transacted at once.
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They do so by quoting bid and ask limits (market making), either on their own initiative, on request of a market participant (quote reuest) or in auctions.
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Additionally tick data often includes information about every change to the best bid and ask. The most common alternative to tick data is candlestick data.
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If last is chosen, it will only be used if it is in between the consolidated bid and ask. Transaction Costs The fees related to initiating and maintaining a position. These include commissions, margin fees, and exchange fees.
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2% between bid and ask. The stock currently has its bid and ask only one penny apart, meaning the bidask spread is a minuscule 0.01%. And Apple has some pretty tight bid-ask spreads.
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Every stock has a bid and asked price when it is being traded, which represents what the stock can be bought and sold at.
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(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle.

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The dealer gives a two-way price (BID and ASK price). 3. The customer takes one of the two prices (he may ask for a re-quote). 4. The dealer confirms the trade.
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Electronic listing of bid and asked quotations of over the counter stocks that do not meet the NASDAQ listing requirements. The system provides continuous quotations on stocks (foreign stocks are only updated twice-daily).
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Ask Price- As used in the phrase 'bid and asked' it is the price at which a potential seller is willing to sell. Another way of saying this is the asking price for what someone is selling. You buy option contracts and stocks on their Ask price.
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Will display the current best bid and ask prices, volume, close price from the previous trading day, open price, high and low price for the day and perhaps the ratio of shares or market participants between the bid and ask. Level II ...
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First, each posts a single bid and asked price pair. This price can signal each firms view of the security, its current desire to buy or sell, or it may indicate that a firm is out of calibration with others in the market.
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Clearing Price - Clearing price a price assigned to an asset, which could be cash, stock, bonds, and other securities, after a buyer has completed the bid and ask process.
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Bid and Ask: The bid is the highest price a person is willing to pay for a security. The ask is the lowest price at which someone is willing to sell a security.

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This is what is known as the bid and ask quotes. For the purposes of this lesson we are going to look at only the ask or second quote for each currency pair as we are going to go over what the bid and ask is in a later lesson.
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For Nasdaq-listed stocks, the price quote includes information on the bid and ask prices for the stock.
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The market maker's job is to maintain a firm bid and ask price for his assigned security. If a broker wants to buy a stock but there are no offers to sell it, the market maker fills the order himself by selling shares from his own account.
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A market maker must at all times display bid and ask prices, for which minimum quantities and maximum spreads are defined instrument by instrument.
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An individual, corporation, partnership or group of firms that creates the Bid and Ask prices for a given OTC security.
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Electronic quotation system of the bid and ask prices for unlisted, over-the-counter securities. Often referred to as "penny stocks," they do not meet the requirements to be listed on the NASDAQ stock-listing system. see also penny stock ...
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When you buy and sell stock, you also have to consider the bid and ask spreads over and above the commissions. With mutual funds, this is not a concern, as you do not buy the stocks directly.

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The interbank quotation of bid and ask rates for USDDEM and USDJPY shows a usual spread of 3 base points (BP), i.e. 1.5560-1.5563 DM or 104.30 to 104.33 YEN per US$. Given an exchange rate of 1.
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Spread - The difference between a currency's bid and ask prices. Stop-buy - A buy order that is executed when an investor-specified price (which is above the current ask price) is reached; ...
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A US daily bulletin which provides updated bid and ask prices for over-the-counter corporate bonds as well as listing brokerages which make a market in those bonds. See also: National Quotation Bureau [MORE] Year End Dividend ...
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Bid/Ask Spread - The difference in points between the bid and ask price. Also called the bid/offer spread. This represents dealer margins. Bullish - Where trader sentiment towards a market is positive, with prices expected to rise.
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Spread: This point or pip difference between the bid and ask price of a currency pair. Stop Order (or stop loss or stop): An order to buy or to sell a currency when the currency's price reaches or passes a specified level.
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The difference between the bid and ask (offer) prices. Big Figure 100 basis points of the underlying foreign exchange rate. This equates to 1.00 in USDJPY and 0.0100 in EURUSD ...
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See also: Bid, Market, Trading, Ask, Stock

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Q: What is the difference between the "bid" and "ask" price of a stock? Which one should I pay when I buy? A: If you've ever traded in a car at car dealership, you understand the difference between the "bid" and "ask" price of a stock.

The bid is the price the dealer is willing to pay to buy from you, be it your used car or a stock you're selling. If you roll onto a car lot with a 1993 four-door Ford Escort LX Hatchback with 100,000 miles, you can expect the dealer to pay $675 if it's in good condition, according to Kelley Blue Book. That's the "bid" price. But if you went to the dealer to buy the same car, the dealer would sell it to you for $2,220. That's the ask price. The "spread" is the difference between the two: $1,545 in the case of the car. The same goes for stocks. If you're looking to sell a stock, a broker will offer to buy it for one price, the bid. And if you're looking to buy it, the broker will offer to sell it to you for another, higher ask price. The spread is the broker's profit. Luckily for everyone, other than brokers, the difference between bid and ask prices has gotten quite small. For instance, the bid on General Electric stock recently was $32.77 and the ask $32.79. The more frequently a stock trades, the closer the bid and ask get. In other words, the spread gets smaller. You can see the bid and ask prices on any stock at money.usatoday.com. Put the stock's name or ticker symbol in the Quick Quote box. Here's a link to the page with GE's information. Which should you pay when you're buying? The ask price. That's the price the broker will charge you. When you're selling, you will get the bid price. Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.

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