Quote

Short description: A quote is the last price at which securities or goods were sold, that is, the most recent value where the buyer and seller agreed and a deal was concluded.

Learn more: A quote is defined as the current price of a financial asset that is communicated by either a buyer or a seller who is prepared to engage in a transaction. This price represents the terms under which they are willing to buy or sell—essentially, it serves as an offer.

Depending on the kind of financial asset in question, a quote may be referred to in various ways. For instance, in the context of currency trading, it is often termed an exchange rate. When dealing with stocks, it may be referred to as the market price of a security. In the case of loans, we talk about the interest rate, while in commodities, it is simply the price of goods or raw materials.

Markets utilize a dedicated quotation commission or committee to monitor and register prices on exchanges. These prices are then disseminated via specialized exchange bulletins that provide comprehensive information on wholesale pricing for goods, securities, and foreign exchange rates. Typically, the opening and closing prices for any trading session are published, alongside the highest and lowest prices reached during the day. This information is commonly referred to as “official quotations.”

Quotes play a crucial role in reflecting the prevailing market conditions at any given auction. They indicate the balance between supply and demand dynamics at play. Various companies that hold securities and currencies refer to these quotes when executing financial transactions and for undertaking the valuation of their inventories of raw materials or goods on their balance sheets.

In terms of methodology, there are two main types of quotations. A direct quotation signifies the unit price of a trading entity—essentially demarcating how much one unit of an asset costs in currency terms. Conversely, a reverse or indirect quotation indicates how much of a product can be acquired for a single unit of currency.