Quote (Price)
A quote represents the current price at which a security is available for purchase or sale in the market. It consists of the bid price, which is the highest price a buyer is willing to pay, and the ask price, which is the lowest price a seller is willing to accept. The difference between these prices is known as the bid-ask spread. Quotes are used in real-time trading to determine the value of stocks, bonds, commodities, and other financial instruments.
Example
A stock’s quote shows a bid price of $50.10 and an ask price of $50.20, indicating that buyers are willing to purchase the stock at $50.10, while sellers are willing to sell it at $50.20.
Key points
• Represents the current bid and ask prices for a security in the market.
• The bid is the highest price a buyer is willing to pay; the ask is the lowest price a seller will accept.
• The bid-ask spread indicates market liquidity and trading costs.
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