What is the 'Ask Size'

The ask size is the amount of a security that a market maker is offering to sell at the ask price. The higher the ask size, the more supply there is that people want to sell. When a buyer seeks to purchase a security, he or she can accept the ask price and buy up to the ask size amount at that price. If the buyer wishes to acquire more of the security over the current ask size, he or she may have to pay a slightly higher price to the next available seller.

BREAKING DOWN 'Ask Size'

Market makers are the ones who offer to buy and sell securities. The market maker must state the price it is asking for a given security (the ask price) and the amount it is willing to sell at that price (the ask size). Also, the market maker must state the price at which it is willing to buy the security (the bid price) and the amount of securities it is willing to buy (the bid size). When a customer order comes to the exchange, the order is filled by the market marker with the lowest ask price (for buy orders) or the highest bid price (for sell orders).

RELATED TERMS
  1. Best Ask

    The lowest quoted offer price among all those offered by competing ...
  2. Bid Size

    The number of shares being offered for purchase at a specified ...
  3. One-Sided Market

    When the market for a security only shows either one bid or one ...
  4. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  5. Inside Market

    The spread between the highest bid price and lowest ask price ...
  6. Bid And Asked

    A two-way price quotation that indicates the best price at which ...
Related Articles
  1. Investing

    What Does Bid And Asked Mean?

    Bid and asked is a two-way price quotation.
  2. Investing

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  3. Investing

    How Bid Price Affects Liquidity

    The bid price is the amount a buyer will pay for a security.
  4. Trading

    The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  5. Investing

    Role Of A Market Maker

    A market maker is a firm or an individual that stands ready to buy and sell a particular security throughout the trading session to maintain liquidity and a fair and orderly market in that security. ...
  6. Investing

    Understanding Gold Quote Prices

    Willing to trade gold but puzzled by gold price quotes and terminology? Investopedia explains how to read gold price quotes.
  7. Investing

    How To Read A T-Bill Quote

    If you want buy and sell US Treasury bills, you need to learn to read the quotes.
  8. Investing

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  9. Insights

    Stock Quotes Explained

    Curious about how stock quotes are compiled and what a trader should know about how? Read on.
  10. Personal Finance

    How Brokers Can Avoid A Market-Maker's Tricks

    Ensure that you and your clients are getting the best deal by avoiding these three pitfalls.
RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  2. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  3. I don't understand how a stock has a trading price of 5.97, but when I buy it I have ...

    It might seem logical that the last traded price of a security is the price at which it would currently be trading, but this ... Read Answer >>
  4. What is the difference between a quote driven market and an order driven one?

    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  5. What does the variance between the bid and ask price of a stock mean?

    Find out how stocks are traded in the market, why the bid and ask prices are different and why the bid-ask spread is smallest ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center