What is Quoted Price?
Quoted price refers to, or other security . A is an estimate of price or a price at which one party is willing to buy or sell a certain number of of from the other. A quoted price consists of a and an .
How Does Quoted Price Work?
For example, a quoted price for Company XYZ
A level I quoted price is the real-time bid and ask price for a security that trades on the or over-the-counter markets. They do not disclose which market makers are bidding for or the security, whether there are limit orders on the security, or the size of potential trades at a particular price.
A level II quoted price is a set of real-time trading information for a security that trades on the Nasdaq or over-the-counter markets. It includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, the high price for the day, the low price for the day and a ranked list of the real-time and ask prices from participating market makers.
A level III quoted price includes all of the above but also allows a to change its bids, offers and order sizes for securities in which it makes a , as well as execute orders, change , and send out trade confirmations.
Why Does Quoted Price Matter?
Quoted prices are necessary to inform investors about the prices of securities. The information contained in a quoted price is sometimes limited; for example, it may not disclose whichmakers are bidding for or the security, whether there are limit orders on the security, or the size of potential trades at a particular price. In other words, quoted prices do not give the viewer access to the "order book" showing who has an interest in a security and at what price. But quoted prices do give traders and investors a basic idea of how a security is doing.