A Two-Way price is a quote in which both the bid and offer are quoted. The two-way price also provides the spread between the bid and the ask price thus providing traders with an idea of the existing liquidity in the security. A last trade quote refers to only the price at which the security last traded. The two-way price gives more data to users than a last-trade quote.
With a Two Way Price you might not have to worry too much about slippage of price of about bad fills. Though such happenings are beyond one’s control, you will be able to predict them in a bit with Two-Way Price.
An investor quote of $52.55/$53.35 (Two-Way Price): This tells investors that they can currently buy the investor shares for $53.35 or sell them for $52.55. The spread (pip) between the bid and the ask price is $0.80 ($53.35-$52.55).
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