A quote is the last price at which an asset traded; it represents the most recent price that convinced both buyer and seller to transact some volume of the asset.
The bid quote reflects the most current price and quantity at which a buyer is willing to purchase an asset, showcasing the buyer’s intent. Conversely, the ask quote displays the price and quantity at which a seller is willing to sell the asset, indicating the seller’s expectations.
A quote is frequently referred to as an asset’s quoted price.
Key Takeaways
- A quote is the last price at which an asset has been traded; it is the most recent bidding or asking price agreed upon by a buyer and seller.
- The bid quote is the currently offered price and quantity a buyer is ready to pay for the asset.
- The ask quote shows the price and quantity at which a current seller is willing to part with the asset.
- Investors often look at historical quotes to analyze trends in a security’s market activity and volatility.
- Various outlets such as investment news sites and trading platforms provide quotes, often with slight delays for public, free services, while near-real-time quotes may be offered as part of premium subscriptions.
Understanding Quotes
Quotes for assets change continuously throughout the trading day as transactions are executed one after another.
When referencing a company’s stock quote, it points to the most recent price where a trade for that specific security was completed. While all market participants look at the last traded price, potential buyers and sellers place higher significance on bid and ask quotes as these reflect current market intentions for purchasing or selling assets.
Investors often check historical quotes of an asset which help inspect trends in market behavior and volatility over time. By observing quotes linked to particular time instances, like comparing quotes from the same calendar day a year apart, investors can identify potential trajectory patterns for the security. Monitoring the quotes across the trading day, especially amid volatility, can help strategize trading activities.
Quotes are accessible from various sources including investment news outlets and trading platforms. While free services may show delayed quotes, premium exchange services offer nearly real-time quotes, which are crucial for making prompt trading decisions.
Most investing platforms empower users with features to set up quote-based alerts, notifying when assets meet certain price thresholds. Such alerts can also trigger automated responses. For instance, an investor can preset a sell order to automatically execute once a stock’s quote reaches a target level.
Related Terms: current price, stock quote, market bid, market ask, volatility, investment platforms.
