Ask Price

Understanding the Ask Price

The ask price plays a crucial role in the operation of any exchange platform.

As part of the bid and ask system, the ask price represents the amount sellers are willing to sell an asset, typically denoted in the base currency.

In conjunction with the bid price, set by buyers, it facilitates price quoting on the exchange.

Ask & bid price

Ask & bid price

Market Orders: Understanding Price Matching

When executing immediate trades, known as market orders, the buy and sell orders are matched based on the most advantageous corresponding prices.

A buy order is matched with the lowest ask price, while a sell order is matched with the highest bid price.

Highly liquid markets generally have smaller spreads because numerous participants are willing to trade. Conversely, low liquidity often results in larger spreads.