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General TradingT

Two-Way Quote

A simultaneous bid and offer price provided by a market maker or dealer for a financial instrument, expressing the prices at which they are willing to buy and sell. Two-way quotes are essential for maintaining market liquidity, as they guarantee that participants can transact in either direction at any time during trading hours. The tightness of a two-way quote reflects market conditions, with narrower spreads indicating higher liquidity.

Example

The dealer provided a two-way quote of 98.50/98.75 on the corporate bond, allowing the portfolio manager to immediately sell at the bid price.