What quote is

A quote is the actual asset price based on the last trades closed on the trading platform. It can be said that this is the rough market price of the asset, which is subject to demand and supply.

The price of an asset drops when there are numerous sellers in the market that make the supply of this asset increase. The price increases and keeps on rising when the demand is high, with numerous buyers in the market.

A quote consists of the Bid price and the Ask price. The first type indicates the price at which a market player is ready to buy the asset, while the second type demonstrates the price at which they are ready to sell the asset.

How a quote is formed

Any market player may offer their own price for the asset, at which they are ready to sell or buy it. This is done by making an application in the form of a pending order. All such applications are processed by the system, after which they are reflected in the Bid and Ask columns. These columns are called market depth.

Pending orders are sorted out from the highest to the lowest price. Medium offers can be found in the middle of a column, by which trades are closed as a rule. Quotes are usually formed on these deals.

Where to find quotes

Information about quotes is provided by various sources, such as news websites or trading platforms. Non-specialised resources may display quotes with a certain lag, while trading platforms publish information in real-time.

How to use quotes

Quotes can help market players make trading decisions. If they use tech analysis, they read charts that are based on quotes. By working with quotes, investors learn to understand market logic, and its laws, and assess trends and topical information.

Many say that the skill of understanding and reading quotes correctly is vital for any trader. Nevertheless, this is not enough for successful trading: a trader needs to assess various factors and indices, react timely but wisely to trend fluctuations, protect their capital with Stop Losses, and remain patient, in waiting for the best possible price to close a trade.