Ask Price

Trading Basics

Ask Price

The ask price is the level at which a seller is willing to accept a bid on a security.

The ask price is always higher than the bid price.

Also known as the offer price.

Other Trading Basics

Cable

Another name for the GBP – USD exchange.

Around half a trillion dollars is traded between the two currencies everyday, making it the third most popular currency pair to trade in behind EUR – USD and USD – JPY.

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Backwardation

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

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