Market Versus Quote - MVQ

Dictionary Says

Definition of 'Market Versus Quote - MVQ'

A comparison between the last price at which a security traded and the most recent bid and ask prices. MVQ comes up when the bid price is the price at which a buyer is willing to purchase a security; the ask price is the price a seller is willing to accept for a security. Usually the best bid and ask prices will be close to the market price, but occasionally, particularly in a thinly-traded security, the market price can differ significantly from the bid-ask price. Securities that trade under high volume and with greater liquidity typically have a smaller market versus the quote value. Conversely, securities that are illiquid will generally have a larger market versus the quote value.
Investopedia Says

Investopedia explains 'Market Versus Quote - MVQ'

A trading instrument's market versus quote value can provide an indication of the type of liquidity under which the instrument trades. Higher values can signal a thinly-traded instrument that may be more challenging to trade; smaller values may identify instruments that trade under high volume and good liquidity, making them ideal candidates especially for active traders and short-term traders. For example, assume that stock ABC last traded at $42.50 per share and the current bid-ask prices are $42.48 and $42.52, respectively, has a MVQ value of 2 cents, considered a small value and indicating a liquid instrument. Stock XYZ, on the other hand, last traded at $42.50 but has bid-ask prices of $41.50 and $43.50 has a MVQ value of $1, considered a large value and indicating an illiquid trading instrument.

Articles Of Interest

  1. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  2. The Nitty-Gritty Of Executing A Trade

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  3. Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  4. Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  5. Low Expense Top Performing ETFs

    A technical look at the four ETFs that rank highest for five-year performance, lowest expense ratio and total net assets.
  6. Break Into Forex In 12 Steps

    Learn how to get started in forex trading.
  7. Market Summary For June 7, 2013

    The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate.
  8. Stocks With Bullish MACD Crossovers

    One of the most popular trading indicators is the MACD, and right now it's flashing a bullish signal in these four stocks.
  9. The Top Trade Setups In Tech

    Check out these trade setups in four technology stocks to take advantage of strong market conditions, while still controlling risk.
  10. Guide to Pairs Trading

    Pairs traders wait for weakness in the correlation, and then go long on the under-performer while simultaneously going short on the over-performer, closing the positions as the relationship returns ...
comments powered by Disqus
Marketplace
Hot Definitions
  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.
  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=9664a33ad134961870cb6851ff521278