What is a Quote in Forex?
Quick Answer: A quote is the real-time bid and ask price displayed for a currency pair, reflecting current market depth, liquidity, and broker pricing quality.
Understanding Quotes in Forex
A quote is the real-time price a broker displays for a currency pair, typically including both bid and ask. Accurate quotes are essential for evaluating spreads, planning entries, and managing orders.
Quote Components
Quotes update multiple times per second on active pairs. They reflect market depth, liquidity, and current interbank sentiment. Level-1 quotes show top-of-book prices, while level-2 feeds reveal deeper liquidity.
Platform Settings
Ensure your platform displays quotes with sufficient decimal precision (pipettes) to avoid rounding errors, especially on JPY pairs.
Quality Control
Compare your broker's quotes to industry benchmarks or LP feeds. Significant discrepancies may indicate delayed data or asymmetric pricing, both of which can hurt execution.
Quote Freezes
If quotes freeze during volatile periods, halt trading immediately. You cannot manage risk without reliable, real-time pricing.
Related Terms
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