The ask price is the best price at which we can buy a financial asset. Read on to find out how you can use ask price in your trading, and how to set the ask price on the xStation platform.
- The ask price is the best price at which we can buy a financial asset.
- It can be defined as the price level at which you can buy a financial instrument.
When operating in the financial markets, you are provided with the ask (purchase) price as well as the bid (sell) price. The ask price is always higher than the bid price and the difference between them is what we call the spread, which is also the cost of executing a transaction in the market.
As an example, if a window on your trading platform quotes the EURUSD market at 1.12027 / 1.12037, then it means that the ask price is 1.12037 and the bid price is 1.12027.
The thing to remember when going long is that your trade will open at the ask price and close at the bid price.
On the other hand, if you go short on the market, your trade will open at the bid price and close at the ask price.
Also, you should remember that the price you see on the chart on the trading platform, the xStation, is the bid price .
In order to set the ask price on the chart, you must first choose the "visible layers" button on the right hand side of the chart, and then select the " Ask " option. After doing this, the ask price will become visible on the chart.
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