Best Ask

AAA

DEFINITION of 'Best Ask'

The lowest quoted offer price among all those offered by competing market makers for a particular trading instrument. The ask price is effectively the lowest price that a seller is willing to offer for an asset, and the best ask is the most favorable ask price offered at a given time for a particular security. Ask is also known as the offer price.

INVESTOPEDIA EXPLAINS 'Best Ask'

The National Best Bid and Offer (NBBO) are the bid and ask prices that traders and investors typically see. Active traders, short-term traders and day traders often study Level 2 quotes that include all the current bids and asks for a particular trading instrument. The NBBO is continually updated throughout the trading session, so that customers have access to these prices.

RELATED TERMS
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee ...
  2. Stock

    A type of security that signifies ownership in a corporation ...
  3. Spread

    1. The difference between the bid and the ask price of a security ...
  4. Ask

    The price a seller is willing to accept for a security, also ...
  5. Reduced Spread

    A reduction in the spread between the buy/bid and sell/ask price ...
  6. Hit The Bid

    A buzzword used to describe an event where a broker agrees to ...
RELATED FAQS
  1. Is it better practice to use a stop order or a limit order?

    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
  2. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  3. How is buying on margin regulated by the Securities and Exchange Commission (SEC)?

    The Federal Reserve Board and the Financial Industry Regulatory Authority (FINRA) regulate buying on margin to a greater ... Read Full Answer >>
  4. Why is the Vortex Indicator (VI) important for traders and analysts?

    Doug Siepman and Etienne Botes developed the vortex indicator to anticipate reversals in price trends. They believed that ... Read Full Answer >>
  5. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

    The trade volume index (TVI) indicates whether an asset is being accumulated or sold. It is calculated using intraday tick ... Read Full Answer >>
  6. What is a common strategy traders implement when using the Volume Weighted Average ...

    Using the volume-weighted average price (VWAP) when trading in short-term time frames is highly effective and simple. One ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  2. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  3. Options & Futures

    Investing 101: A Tutorial For Beginner Investors

    Do want to invest, but don't know how to begin? We'll show you the building blocks you need to get started.
  4. Trading Strategies

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
  5. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.
  6. Trading Strategies

    10 Steps To Becoming A Day Trader

    Want to be the master of your career by becoming a full-time day trader? Follow these 10 steps to be a successful trader.
  7. Trading Systems & Software

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  8. Trading Strategies

    The Top U.S. Regulated Stock Brokers

    To operate in the United States, stock brokers must comply with SEC regulations that protect investors. Here is a look at some of the best.
  9. Investing

    Should You Average Down When Trading Stocks?

    Averaging down on a stock can allow you to avoid having to admit you are wrong. On top of this and given enough time, the strategy can result in a profit.
  10. Trading Systems & Software

    Top 10 Brokerage Firms For Day Trading

    Day traders have different needs from long-term investors. Investopedia rates the top 10 brokerage firms for day traders.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center