Inside Quote

  

Categories: Trading, Banking

Inside quotes are on the inside of exchanges. The best bid and ask prices in a competitive market exchange are the inside quotes.

The “quote” refers to the market price of the assets, and they’re called “inside” quotes because investors can only see them through the exchange trading platforms.

Market makers (investors or firms who make profits off the difference between bids and asks) will be working all day long with inside quotes. They’re looking for the lowest bid and the highest ask to make the most profit. For instance, they could buy an asset from someone who sold it at a low price, and then resell it to the highest ask, keeping the difference: the classic bid-ask spread.

Bid-ask and ye shall receive.

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Finance: What is the Bid-to-Cover Ratio?11 Views

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Finance allah shmoop what is the bid to cover ratio

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doesn't have to do with how much of the blanket

00:10

your loved one leaves you at night No that's bed

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to cover ratio Totally different We're talking about a sentiment

00:17

index as it relates to us treasury bill auctions and

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the overall health of the u s economy As you

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hopefully remember us treasury securities air sold at a discount

00:29

to par pay no interest along the way and then

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just pay full par at the end That is a

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bid for a six month t bill might be a

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nine hundred eighty eight dollars and twenty cents for a

00:40

piece of paper paying a thousand bucks in six months

00:44

We'll have the government come up with that nine hundred

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eighty eight twenty number Was it from an act of

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congress a mandate from the prez of bill no it

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was set by bids from investors hoping to be ableto

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buy that grand payable in six months for as cheap

01:00

a price as possible But once that bid number is

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set well then the government decides it wants to sell

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me x dollars worth of that particular security and the

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price is set The government hopes that there are buyers

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or bitters for that security paying some in two ish

01:16

percent and change an annualized returns Well if there are

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tons of bidders at two percent it signals to the

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government that next week well it can probably offer just

01:26

one point eight percent for that same paper all else

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being equal and you know then they can raise as

01:31

much money as they want at that point Well if

01:33

there are scant few bidders well then it signals to

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the g men that they might have to raise the

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rent they pay on the money they're willing to borrow

01:42

here A two point once before do two point three

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percent or something like that So the bid teo cover

01:47

ratio is the number of bids made divided by the

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number of bids accepted or covered and it's a carefully

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tracked number because it conveys a lot of market intelligence

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about investor demand for us paper and you know generally

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how healthy things are So to recap bid to cover

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ratio bed to cover ratio on this would be a 00:02:08.09 --> [endTime] bed couch ratio

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