Definition: A quotation in financial markets refers to the bid and ask prices at which a currency pair, stock, commodity, or other financial instrument can be bought or sold. The bid price is the highest price a buyer is willing to pay, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the spread.
Understanding and analyzing quotations is crucial for effective trading. Quotations provide real-time information about the market value of an asset and help traders make informed decisions about buying and selling. By monitoring bid and ask prices, traders can gauge market liquidity, assess trading costs, and determine optimal entry and exit points for their trades. Accurate quotations enable traders to execute their strategies efficiently and maximize potential returns.
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