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.

BREAKING DOWN '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.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
  4. 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 >>
  5. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
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