Quotes and Executable Prices

Quotes and executable prices distinguishes bid, ask, spread, tick increments, market-data displays, calculated reference prices, dealer indications, actionable quotes, and completed trades.

Start with Market Quotes and Executable Prices for bid, ask, spread, quote size, timing, Level 2, midpoint, firmness, dealer interest, and fill evidence. Use Price Ticks and Quote Increments for tick size, tick value, valid order-price steps, and handle terminology.

Decision Lens

A displayed number may be a completed trade, firm quote, indicative quote, midpoint, depth display, or delayed observation. These records answer different questions and should not be treated as equivalent.

Move to Order Types and Execution when the issue is how an instruction interacts with available prices. Move to Market Quality and Microstructure when the issue is liquidity, queue priority, market impact, or transaction-cost analysis.

Evaluation Checklist

• Identify the instrument, side, price, size, timestamp, market, venue, and source.
• Classify the record as real-time, delayed, midpoint, depth, dealer indication, firm quote, or execution.
• Compare order size, order type, and arrival time with available quote size and depth.
• Watch for halted, suspended, thinly traded, or off-exchange securities.
• Use the execution report for final fill evidence.

Common Mistakes

• Treating delayed quotes as current trading evidence.
• Treating a midpoint, dealer axe, workout market, or indicative price as a firm executable quote.
• Ignoring quote size when placing a larger order.
• Confusing tick size with tick value or assuming every instrument uses the same increment.
• Comparing quotes from different venues without checking conditions and timestamps.
• Using a last sale as if it were the current bid or offer.

For broader context, return to Quotes, Prices, and Market Data.

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