Two-Way Quote
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). |
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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). |
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