Two-Way Quote

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DEFINITION of 'Two-Way Quote'

A type of quote that gives both the bid and the ask price of a security, informing would-be traders of the current price at which they could buy or sell the security. The two-way quote also shows the spread between the bid and the ask, giving traders an idea of the current liquidity in the security (a smaller spread indicates more liquidity).

INVESTOPEDIA EXPLAINS 'Two-Way Quote'

This type of quote provides more information to users than a last-trade quote, which quotes only the price at which the security last traded.

An example of a two-way quote would be: Citigroup quote of $52.50/$53.30.
This tells traders they can currently purchase Citigroup shares for $53.30 or sell them for $52.50. The spread between the bid and the ask is $0.80 ($53.30-$52.50).

RELATED TERMS
  1. Left-Hand Side

    The bid side in a two-way price quote. A two-way price quote ...
  2. Ask

    The price a seller is willing to accept for a security, also ...
  3. Liquidity

    1. The degree to which an asset or security can be bought or ...
  4. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. Quote

    1. The last price at which a security or commodity traded, meaning ...
RELATED FAQS
  1. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Full Answer >>
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