What is Offer Price in Stock Market

When you trade in the stock market, you come across two prices: the offer price and the bid price. The offer price is the price at which you can buy a stock from a broker. This price is slightly higher than the market price.

In this guide, you will learn what an offer price is, how it works, and other essential details.

Understanding Offer Price Meaning in Stock Market

An offer price is the amount at which a trader can purchase underlying securities from a broker or market maker. For the market maker, it is the price at which they are willing to sell an asset.

In the trading market, an offer price is the price per share at which you can buy securities. Commonly known as the ask or asking price, it is usually the lowest price at which the broker is willing to sell the stock to the investor. 

Another price that comes along with an offer price in the share market is the bid price, which is the highest rate a buyer agrees to pay for an investment security. An offer price is slightly above the market price, while the bid price is slightly below.

The difference between an offer price and a bid price is known as the spread value. It is the fee traders have to pay to open a position.