Ask Size

AAA

DEFINITION of 'Ask Size'

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.

INVESTOPEDIA EXPLAINS '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. Proportional Spread

    A measure of a security's liquidity that is calculated by comparing ...
  2. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  3. Bid Size

    The number of shares being offered for purchase at a specified ...
  4. Touchline

    The highest price that a buyer of a particular security is willing ...
  5. Order Imbalance

    A situation resulting from an excess of buy or sell orders for ...
  6. Ask

    The price a seller is willing to accept for a security, also ...
Related Articles
  1. The Basics Of The Bid-Ask Spread
    Investing Basics

    The Basics Of The Bid-Ask Spread

  2. What do the
    Trading Strategies

    What do the "BxA" numbers on my brokerage's ...

  3. Why are the bid prices of T-bills higher ...
    Investing

    Why are the bid prices of T-bills higher ...

  4. How To Invest In The Nikkei 225
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center