The ask price (also called the offer) is what sellers want right now. If you place a market buy order, you typically pay near the current ask. The gap between the bid and the ask is the spread, and a tight spread usually signals a more liquid market.
Key takeaways
- Buyers usually deal at or near the ask when they need shares immediately.
- A wide bid-ask spread raises your trading cost even before commissions.
- Limit orders let you name your own price instead of lifting the ask.
- Watch the ask size as well as the price; thin size can move the market against you.
Why it matters in Ethiopia
On a young exchange, spreads can be wider than in deep markets. Knowing the ask helps you avoid overpaying simply because you hit a market order without checking depth.