Quotation (Finance)

Key takeaways
* A quotation is the most recent sale price of an asset and usually includes bid and ask prices.
* The bid is the highest price a buyer will pay; the ask (offer) is the lowest price a seller will accept.
* The bid–ask spread represents a liquidity cost to traders.
* Quotations also include daily open, high, low, and close values that help show intraday movement.

What a quotation is

A quotation shows the current market price information for a traded asset (stocks, bonds, futures, commodities, etc.). When people refer to “the quote” they most often mean the last trade price, but a complete quote typically lists:

• Last trade price
• Bid (highest current buy offer)
• Ask/offer (lowest current sell offer)
• Day’s open, high, low, close

How quotations work

The bid and ask represent the prices at which market participants are willing to buy and sell at a given moment. The difference between them—the bid–ask spread—is the immediate liquidity cost of transacting: buyers generally pay the ask, sellers receive the bid.

Wider spreads usually indicate lower liquidity or higher market uncertainty (for example, during market stress or after major news). Daily open/high/low/close values add context about intraday trends and volatility.

Types of quotations

Stocks
* Stock quotes show last price, bid, ask, and day range. Highly liquid stocks typically have tight spreads; less liquid stocks have wider spreads.

Bonds (fixed-income)
* Bond quotes list bid and ask as well as par value and yield measures.
* Bonds are often quoted as a percentage of par. For example, a corporate bond quoted at 97 trades at 97% of face value—if par is $1,000, the price is $970.
* Par (face or nominal value) is the original value used to calculate maturity payout and coupon interest. Par does not change when market price fluctuates.

Futures and commodities
* Futures quotes work similarly but represent agreed prices for delivery at a future date. Traders use futures to hedge or speculate.
* Example: buying an oil futures contract at $80/barrel obligates the buyer to purchase (and the seller to deliver) at $80 on the contract’s settlement date. Futures trading typically requires only an initial margin rather than the full contract value.

Practical example

A liquid stock like Apple (AAPL) might close at $165 with a day range of $161–$167. Midday, its bid might be $162.99 and its ask $163.01—a two-cent spread. A buyer would pay the ask and the seller would receive the bid; the last trade price is what most people reference when noting the stock’s current price.

Common related terms

How to read a stock quote
* Look at the last trade price for the current market price.
* Check bid and ask to understand what price you can likely buy or sell at immediately.
* Review day range and volume for context on activity and volatility.

Real-time quotes
* Real-time quotes update continuously and are essential for active traders. Not all platforms deliver identical latency—faster feeds can benefit high-frequency strategies.

Nominal quotation
* A nominal quotation is a hypothetical or indicative price (often labeled FYI or FVO). It’s for informational or valuation purposes, not a firm offer.

Interdealer quotation system (IQS)
* An IQS aggregates quotes from brokers and dealers to organize and disseminate price information across markets. Different IQSs may specialize in different market segments (exchanges, OTC platforms, etc.).

Conclusion

Quotations are the foundational price signals of markets, conveying last traded price plus bid/ask and daily ranges. Traders use them to assess current price, liquidity (via the spread), and short-term market behavior. For execution-sensitive decisions, always consider bid/ask spreads, quote freshness, and platform latency in addition to the headline price.